Last month, China's service sector experienced a surprising rebound, improving to its highest level in 14 months.
According to Bloomberg on August 5, the S&P Global China Services Purchasing Managers' Index (PMI) for July rose by 2 points to 52.6, up from 50.6 in the previous month.
This is the highest figure since May 2024, marking a 14-month peak, and it significantly exceeds the median forecast of 50.4 from experts surveyed by Bloomberg.
The S&P Global Services PMI is calculated based on surveys of purchasing managers at service companies. A reading above 50 indicates economic expansion, while a reading below 50 signals contraction. Previously known as the 'Caixin PMI,' this index is considered to better reflect the business trends of export-oriented and small-scale companies compared to the National Bureau of Statistics' PMI.
Earlier, on July 31, the National Bureau of Statistics of China announced that the July Services PMI stood at 50.0, down by 0.1 point from 50.1 in the previous month.
Bloomberg reported that exports increased at the fastest pace since February, thanks to rising travel and a stable trade environment. Summer is typically the peak season for the service sector, including tourism, transportation, and entertainment.
S&P Global stated, "Improved demand conditions have supported the recent increase in business activity, with overseas demand in particular showing a notable recovery."
Meanwhile, the S&P Global China Manufacturing PMI released on August 1 fell to 49.5 from 50.4 in the previous month, entering contraction territory.
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