China Caixin/Markit PMI for June Services 50.3 (vs. expected 55.7) Composite 50.6 (vs. prior 53.8)

China Caixin/Markit PMIs Services and Composite for June

Services quite the miss and drop at 50.3

• expected 55.7, prior 55.1

• 50.3 is a 14 month low

• firms cut staff in June for the first time in four months

• survey showed an easing in inflationary pressures, input costs rose at the slowest pace since September 2020 & services firms cut their prices charged for the first time in 11 months

Composite 50.6

• prior 53.8

China was hit by a wave of infections in the heavily populated and industrial heartland south during the month. Service industry tends to bear the brunt of restriction measures, as has been the case in this result.

Concerns are growing that the slowdown could extend, damaging China's economic momentum.