China’s Caixin PMI Services fell sharply to 51.2 in June, down from 54.0 in May, significantly below expectations of 53.4. This marks the lowest reading since October 2023 but remains in expansionary territory for the 18th consecutive month. PMI Composite also declined from 54.1 to 52.8, signaling an eighth month of expansion.
Wang Zhe, Senior Economist at Caixin Insight Group, stated, “Supply and demand expanded, with the manufacturing sector outperforming services.” He noted that employment at the composite level contracted, while price levels remained stable. However, price levels in the services sector were weaker compared to manufacturing.
“Notably, the gauge for future output expectations recorded a five-year low,” Wang added, indicating weak optimism among both manufacturers and service businesses. This suggests that while current activity remains in growth territory, there are significant concerns about future performance across sectors.
