Among the focus of the market in the Asian session today (Wednesday) is the data report for the main sectors in China as the second largest economy in the world.
China services PMI data fell to 50.2 points in July 2024 from 50.5 in the previous month, in line with market estimates.
This showed continued but modest expansion in the non-manufacturing sector, marking the 19th consecutive month of growth.
However, the reading was the lowest since November last year, highlighting some easing in the sector.
Meanwhile, China's manufacturing PMI declined to 49.4 points in July 2024, indicating contraction for 3 consecutive months in the sector.
The situation is affected by weak domestic demand and global economic uncertainty.
The different data in the manufacturing and non-manufacturing PMIs suggest different dynamics in the Chinese economy.
The continued contraction in manufacturing signals challenges such as supply chain disruptions, rising input costs and weaker external demand.
In contrast, steady albeit slow growth in the non-manufacturing sector points to resilience in services and construction, likely supported by domestic consumption and government infrastructure projects.
