China Caixin July Services PMI 54.1 (expected 52.5, prior 53.9)

Caixin / S&P Global Services PMI for July is a beat and an improved 54.1 and a seventh consecutive month of expansion

• expected 52.5, prior 53.9

The Composite, however, is down from June at 51.9

“In terms of policies, the top priorities should still be
guaranteeing employment, stabilizing expectations and increasing
household income,” said Wang Zhe, senior economist at Caixin
Insight Group.

—

An encouraging result from China. The Composite was dragged down by the manufacturing PMI that fell into copntraction in July (see below for more on the Caixzin Manufacturing PMI for July).

—

Earlier:

• China official July Manufacturing PMI 49.3 (vs. expected 49.2) & Services 51.5

• China June 2023 Caixin / S&P Global Manufacturing PMI 49.2 (prior 50.5)

• China’s Caixin Manufacturing PMI dropped into contraction July – stimulus hope remains

—

China has two primary Purchasing Managers’ Index (PMI) surveys – the official PMI released by the National Bureau of Statistics (NBS) and the Caixin China PMI published by the media company Caixin and research firm Markit / S&P Global.

• While the NBS’ PMIs cover large and state-owned companies, the Caixin PMI survey covers more small and medium-sized enterprises. As a result, the Caixin PMI is considered to be a more reliable indicator of the performance of China’s private sector.
• Another difference between the two surveys is their methodology. The Caixin PMI survey uses a broader sample of companies than the official survey. Despite these differences, the two surveys often provide similar readings on China’s manufacturing sector.