China’s services sector growth weakened for a second month running in May, according to results from an independent survey.
The Caixin-Markit services purchasing managers index dropped 0.5 per cent from the previous month to 51.2 in May, closer to the 50-point mark separating growth from contraction. The latest figure from the gauge, which focuses on smaller, private firms, came in close to a point below the May reading from the official survey, which tracks activity primarily at large and often state-run firms.
The headline figure’s fall reflected concomitant sluggishness in growth of new orders received by service providers. While services firms notched another month of expanding employment, the rate of growth was marginal and some companies reported restructuring plans had put the brakes on new hires in May.