Composite 51.7
- prior 51.9
That's a disappointing services PMI. The yuan has been hit on it:
From the Caixin report:
Latest PMI data signalled a softer expansion in service sector output in China during August.
- Business activity increased at the slowest pace in eight months amid a softer rise in overall new work.
- Notably, new business from abroad fell for the first time in 2023 so far.
- Nevertheless, companies remained optimistic around the 12-month outlook, and planned company expansions supported a further increase in employment across the sector.
On the prices front, the rate of input cost inflation cooled to a six-month low, while selling prices increased at the slowest rate since April.
While service sector output has now risen in each of the past eight months, the latest upturn was the slowest recorded over this period.
- The slowdown in business activity coincided with a weaker increase in overall new business.
- New orders increased modestly, and at a pace that was below the average seen for 2023 to date.
- Data suggested that this was partly due to weaker foreign demand for Chinese services.
- New export business fell for the first time since December 2022, albeit marginally, amid reports of sluggish overseas market conditions.
Although growth momentum slowed, companies continued to add to their staffing levels during August.
- The rate of job creation was little-changed from July and modest, amid reports of higher business requirements and plans to expand capacity.
Business confidence around the 12-month outlook remained positive in August.
Companies often linked growth forecasts to projections of stronger global economic conditions and improved customer numbers. That said, overall optimism edged down slightly from July, reaching a nine-month low.
