China July services PMI: 55.5 (prior 54.5)

China Markit / Caixin Services PMI: 55.5

• up from 54.5 in June

Composite 54.0

• prior 55.3

From the report, the summary of the Composite:

• “The Caixin China General Composite PMI came in at 54 in July, down 1.3 points from the previous month and still in expansionary territory. Supply and demand continued to improve with supply stronger than demand. Employment remained weak. Business costs were still on the rise. Confidence in the market remained stable.
• “In general, the eased Covid situation and restrictions facilitated a continuous recovery in the economy. The services sector, which had been previously hit harder by the outbreaks than manufacturing, showed stronger improvement. Supply and demand continued to improve with supply stronger than demand. The labor market shrank greatly, adding to employment pressures. Business costs steadily climbed while prices charged remained stable, posing challenges for company profits. The market held on to positive sentiment, even with concerns about the outlook for Covid and the economy.
• “Major macroeconomic indicators in the second quarter showed that the short-term economic shock of the latest round of Covid outbreaks was fading. The third quarter will therefore be a crucial period to get the economy back on track. The manufacturing and services sectors improved for the second straight month in July, though the foundation remained weak. As the authorities have made it clear that no ultra-massive simulative measures will be forthcoming, effective implementation of existing policies is a more practical option. Moreover, the labor market remained under pressure and the financial situation of low-income groups deteriorated. Therefore, policies should focus on higher degrees of job market stabilization, subsidy issuance and temporary relief measures.”

inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term