China's services activity expanded at the slowest pace in eight months in August, a private-sector survey showed on Tuesday, as weak demand continued to dog the world's second-largest economy and stimulus failed to meaningfully revive consumption.
The Caixin/S&P Global services purchasing managers' index dropped to 51.8 in August from 54.1 in July, the lowest reading since December when COVID-19 confined many consumers to their homes. The 50-point mark separates expansion from contraction in activity.released last week, which showed the sector continued to trend downwards. Even the record number of passenger railway trips and stellar box office earnings during the summer failed to drive up the reading.
Caixin/S&P's composite PMI, which includes both manufacturing and services activity, edged down to 51.7 from 51.9 in July, marking the eighth straight month of expansion, albeit the weakest since January. The increase in new orders in the services sector was below the average seen for 2023 to date, partly due to weaker foreign demand, according to Caixin services PMI.Business confidence for the 12-month outlook reached a nine-month low.
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