Investing.com-- Chinese service sector activity grew less than expected in June, private purchasing managers index data showed on Wednesday, as local demand remained weak and growth of new business activity eased.
The Caixin Services PMI rose 51.2 in June, missing expectations for a print of 53.5 and slowing from 54 seen in the prior month. While a reading above 50 still indicates expansion, the pace of growth in the indicator slowed sharply.
The services PMI marked its 18th consecutive month of growth, having remained in expansion ever since a post-COVID reopening in late-2022.
But China’s economy has struggled to pick up since then. While demand for services has remained relatively stable, it has also struggled to improve, especially amid weak consumer confidence in the economy.
Wednesday’s data showed that new orders and demand still grew in June, albeit at a slower pace. External demand also remained strong, with export orders remaining comfortably in expansion.
But employment in the service sector worsened, while companies grew pessimistic over the economic outlook. Businesses were now looking to Beijing for more stimulus measures, which had largely supported the economy in recent months.
A sustained slump in the property market has also been a major pain point for the Chinese economy.