Expansion in China Services Activity Falters, Caixin PMI Shows

The index came in at 51.6 in August, down 0.5 points from the previous month

Growth in China’s services activity saw faltering momentum in August as the gauge of employment contracted again after the previous month’s expansion, a Caixin-sponsored survey showed Wednesday.

The Caixin China General Services Business Activity Index, which provides an independent snapshot of operating conditions in industries such as retail and tourism, came in at 51.6 in August, down 0.5 points from the previous month.

A reading above 50 indicates an expansion in activity, while a number below signals a contraction.

The index, also known as the Caixin China services PMI, is one of the earliest available monthly indicators of business activity in the world’s second-largest economy. The services sector accounted for about 57% of China’s GDP in the first half of the year, according to government data.