China services growth slows to eight-month low in August

(Sharecast News) - Business activity in China's services sector increased at its lowest rate in eight months in August, according to a private survey out on Tuesday. The Caixin/S&P services purchasing managers' index (PMI) dropped to just 51.8 last month, down from 54.1 in July.

While any figure over 50 still indicates an expansion in activity, this was the lowest reading since December as a result of below-average new order intake. The consensus forecast was for a reading of 53.

"Data suggested that this was partly due to weaker foreign demand for Chinese services. New export business fell for the first time since December 2022, albeit marginally, amid reports of sluggish overseas market conditions," S&P said in a statement.

Meanwhile, the rate of input cost inflation cooled to a six-month low, while selling prices increased at the slowest rate since April. Job creation showed modest growth, little changed with July.

The Caixin/S&P general composite PMI, which combines both services and manufacturing activity, fell to 51.7 in August from 51.9 in July. This was the eighth consecutive expansion in activity but the lowest reading since January.