China: The Services sector finds colors in July

The activity index of purchasing directors (PMI) for services. In addition, calculated by S&P Global and the Chinese economic media Caixin, was established at 52.6 points in July, sharply increased to the previous month (50.6). Nevertheless,

The growth of the service sector in China rebounded in July. Similarly, according to an independent barometer published Tuesday, despite persistent trade tensions with Washington and a morale of half-tone consumers.

The activity index of purchasing directors (PMI) for services. calculated by S&P Global and the Chinese economic media Caixin, was established at 52.6 points in July, sharply increased to the previous month (50.6).

A key indicator of consumption, it significantly exceeds the forecast of economists surveyed by the Bloomberg agency (50.9).

This barometer reflects an expansion of activity beyond the threshold of 50 points – below, it is a contraction.

The second world economy china: services sector finds colors faces a long crisis in the real estate sector. which weighs on the finances of local authorities and on consumer morale.

These difficulties were aggravated by the trade war launched by Washington at the start of the year – which. initially stimulated exports by high customs duties.

In response. the Chinese-party state has multiplied the support measures for the economy, such as incentives for the purchase of vehicles and household appliances.

“Based by the hope that global economic. commercial conditions will strengthen in the coming months”, the level of confidence of companies in the service sector is “the highest since March”, notes Jingyi Pan, economist at Caixin quoted in the survey.

The situation is however more degraded in the manufacturing sector. which slowed down in July, according to official government figures as well as another S&P Global-Caixin barometer published last week.

Consequently, the PMI composite index of Caixin, which agrees china: services sector finds colors services and manufacturing industry, also published on Tuesday, slowed down to 50.8, against 51.3 last month.

Faced with exports in loss. Chinese growth could slowly slow down in the second half of the semester, economists of the Japanese firm Nomura in a note on Tuesday, jeopardizing the official objective of »approximately 5%” for 2025.