China non-manufacturing PMI retreats

CNC

An official monthly survey shows that business activity in China's non-manufacturing sector slightly slowed in July.

 

Let's take a look.

 

The Purchasing Managers Index (PMI) of the non-manufacturing sector came in at 54.2 percent in July, down 0.8 percentage points from June. This is according to a ................................................

report jointly released by the National Bureau of Statistics and the China Federation of Logistics and Purchasing (CFLP).

   

July's reading marked the lowest level in six months, but still well above the 50-threshold that demarcates expansion and contraction.

 

The non-manufacturing PMI tracks activity in sectors including construction, software, aviation, railway transport and real estate.

 

Notably, the property market remained weak, with the business activity, new orders and price indices for the sector all dipping below the 50-percent demarcation.

   

Earlier official data showed China's home prices continued a downward trend in more cities in June.

 

The average price in these 70 cities in June slipped 0.47 percent from the previous month, marking a second consecutive monthly drop.

   

The data came on the heels of the manufacturing data that showed   activity quickened to the highest level in more than two years in July, reinforcing signs that the economy is firming up on government support policies.

   

After a shaky start this year, Chinese policymakers have pinned hopes on accelerating investment on railways and infrastructure, quickening fiscal spending, and selectively easing monetary policies to support faltering growth.

   

Helped by these efforts, China's economic growth showed more recovery signs in the second quarter, with growth accelerating to 7.5 percent from the 7.4-percent expansion in the first time