China’s services activity is still positive but quickly subsides

03.07.24

China services activity slowed in Jun to May, but remained in positive area at 51.2 level which implies expansion. Weak demand is a major reason for apathy in service sector.
Consumers are still uncertain about their prospects after the major property crisis that started in 2021.
In the middle of July the major leadership gathering will be held in China at which more stimulus are expected to be adopted to stimulate the economy.