Home Business Caixin China’s service industry PMI recorded 50.3 in June, dropping to 14-month minimum_Caixin PMI Channel_Caixin Network

Caixin China’s service industry PMI recorded 50.3 in June, dropping to 14-month minimum_Caixin PMI Channel_Caixin Network

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  [Caixin.com](trainee reporter Fan Qianchan)Affected by the rebound of the epidemic in some parts of Guangdong, residents’ demand was suppressed in June, which led to a weakening of the expansion of China‘s service industry. The Caixin China Service Industry PMI (Purchasing Managers Index) for June 2021 announced on July 5 recorded 50.3, a drop of 4.8 percentage points from May, the lowest in 14 months. Although it is still in the expansion range, the growth rate is obvious. Slow down.

The previously announced June Caixin China Manufacturing PMI recorded 51.3, which was 0.7 percentage points lower than that in May. Due to the simultaneous slowdown of manufacturing and service PMIs, the June Caixin China Composite PMI recorded 50.6, which was lower than 5. 3.2 percentage points per month, which also slowed to the lowest in 14 months.

This trend is consistent with the PMI of the National Bureau of Statistics. The National Bureau of Statistics announced that the manufacturing PMI for June 2021 was 50.9, 0.1 percentage point lower than that in May; the business activity index of the service industry fell 2.0 percentage points to 52.3, and the composite PMI output index was 52.9, a drop of 1.3 percentage points.

From the breakdown of data, the growth of new orders in the service industry in June slowed to the lowest in 14 months. The surveyed companies reported that the recent outbreak of the epidemic and the reduction in travel have restrained the overall growth of orders in the service industry. However, the new export order index of the service industry has returned to above the prosperity and decline line, but the degree of expansion is limited. The manufacturing new orders index also fell. Looking at the two major industries, the new orders index slowed to the lowest in 14 months in June.

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Due to the control of raw material and labor costs, the service industry input price index in June dropped significantly from the recent high in May, and set the lowest record in nine months. The manufacturing input price index has also fallen sharply. Although the comprehensive input cost is still in the expansion range, it has fallen to its lowest level in eight months.

Due to the decline in corporate costs and the suppression of travel demand by the epidemic, in June the service industry corporate fee prices ended the previous 10-month upward trend and fell back. The fee price index fell into a contraction range. The interviewed companies indicated that the price cut was to attract newcomers. business. However, the manufacturing ex-factory price index is still in the expansion range, driving the comprehensive output price to rise only slightly.

Affected by the decline in business demand, the service industry contracted in June for the first time in four months. Although the manufacturing employment index increased slightly in the expansion range, the rebound in manufacturing employment was offset by contraction in the service industry, and the total employment of the two major industries still fell slightly.

Although Chinese service industry companies are still optimistic about their business prospects in the coming year, as the epidemic broke out again, overall optimism plummeted in June, and industry confidence fell to a nine-month low. Many companies believe that the epidemic will be brought under control, and that market conditions and global demand will further recover in the future.

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According to Wang Zhe, senior economist at Caixin Think Tank, the expansion of manufacturing and service industries in June was still maintained, and inflationary pressures were temporarily eased. However, affected by the recent epidemic in some areas, the service industry has become more vulnerable. Since the outbreak of the epidemic, the manufacturing industry has gradually returned to normalization, and the service industry is still relatively sensitive to the epidemic situation. After entering the second half of the year, as the low base effect continues to weaken, the economic downturn is intertwined with inflationary pressures, which remains a severe challenge.

  Related reports:

Caixin PMI Analysis|The impact of the epidemic on the service industry boom, the manufacturing industry’s supply shock gradually appears

[Caixin PMI]June 2021 Caixin China Service Industry PMI Report

[Caixin PMI]Analysis: The expansion momentum of the service industry is weaker than that of the manufacturing industry

In June, Caixin China‘s manufacturing PMI recorded 51.3 and fell to a three-month low

Caixin PMI Analysis|Manufacturing industry’s downturn and supply shocks gradually appear


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