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在线翻译:
szdaily -> Business
Services sector loses steam
    2017-July-6  08:53    Shenzhen Daily

THE services sector grew at a slower pace in June as new orders slumped, signaling renewed pressure on businesses after a pickup in May and pointing to a softening outlook for the Chinese economy, a private business survey showed yesterday.

The findings reinforced analyst views that the world’s second-largest economy is cooling after a strong start to the year, as the government cracks down on easy credit to contain a dangerous buildup in debt and defuse financial risks.

The Caixin/Markit services purchasing managers’ index (PMI) dropped to 51.6 in June from 52.8 in May, when a surprise rebound broke four straight months of declines. The June figure marks the second-lowest business activity level for service providers in over a year.

Subdued demand was behind the latest slowdown, as the new business sub-index weakened to 51.9 in June from May’s 53.5, hitting its lowest since May 2016.

Analysts remain convinced that as deleveraging efforts persist, China’s economy will take a hit.

“Even though the impact of slowing expansion in China’s services sector was cushioned by a slight rebound in manufacturing activity, the downward trend in the economy remains entrenched,” said Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group.

Profit margins also appeared to be under pressure, with services companies only able to pass on a marginal portion of their input costs to consumers, although the rate at which costs are rising slowed in June.

As a result, the rate of job creation in the services sector fell further in June to its slowest in 10 months.

China is counting on services, particularly high value-added services in finance and technology, to lessen the economy’s traditional reliance on heavy industry and investment. The sector accounts for more than half of China’s gross domestic product.(SD-Agencies)

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