In July, the PMI of Caixin China's service industry dropped to 51.6

The July Finance New China General Service Business Activity Index (PMI) released on August 5 recorded 51.6, down 0.4 percentage points from June, the lowest in five months.

Prior to the announcement, the PMI of Caixin China's manufacturing industry rose to 49.9 in July, the PMI of the two major industries rose and fell, and Caixin China's comprehensive PMI recorded 50.9 in July, which was higher than 0.3 percentage points in June.

Caixin China's service industry PMI and integrated PMI trends are consistent with the PMI of the Bureau of Statistics. The business activity index of service industry released by the National Bureau of Statistics in July dropped by 0.5 percentage points to 52.9, while the comprehensive PMI recorded 53.1 points, up by 0.1 percentage points.

The growth rate of new orders in service industry remained strong in July, but there were signs of a slowdown. The service companies surveyed said that the growth of new orders was mainly due to the release of new products and the increase of new customers. Total new orders in manufacturing resumed growth. The growth rate of orders in the two industries rose and fell. The growth rate of new orders in July was higher than that in June, but the overall growth rate was still moderate. In July, new export orders of service industry resumed growth, reaching the highest growth rate in three months. Overseas demand is generally strong. New export orders in manufacturing industry continued to shrink slightly. Driven by service industry exports, the volume of new export orders in July recorded a slight increase.

The scale of comprehensive employment in enterprises has contracted slightly for three consecutive months, and the employment situation is still depressed. This is mainly attributed to the decline in employment in manufacturing industry. Affected by the slowdown in growth of business activities and cost control by enterprises, the willingness of employment in service industry was restrained in July, and the expansion of employment was only a small margin. In July, the input cost of service industry increased significantly, the increase was slightly higher than that in June. The respondents reflected that the rising costs were mainly related to the rising prices of raw materials, fuel and labor. The increase in manufacturing input costs has narrowed. In July, the cost of investment continued to rise slightly.

It was dragged down by a slight decline in factory prices in manufacturing industry, and in July, the comprehensive pricing declined for the first time in six months. The price increase of service enterprises is still slight. Many enterprises say that the market competition is fierce and the overall pricing power is constrained.

In July, manufacturing confidence increased, while service optimism remained strong. Generally speaking, the confidence of the two industries in the production and operation prospects in the next 12 months has risen to the highest level in three months. Zhong Zhengsheng, chairman and chief economist of Monita Research, a financial think tank, said that China's economy showed a phased recovery and improvement in July, which was related to large-scale tax cuts and fee cuts, sustained monetary policy efforts and the government's investment in infrastructure. However, the sustainability of China's economic recovery needs to be further observed in the context of strict debt and financial regulation and trade frictions. At present, China's economy is not in a stall situation, and the economic deceleration is a volatile and controllable process.