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Investing.com-- China’s service sector grew at a faster-than-expected pace in August, private purchasing managers index data showed on Wednesday, aided by strong domestic demand and as export orders also increased.
The RatingDog China General Services PMI rose to 53.0 in August from 52.6 in July. The print also beat expectations of 52.4.
Stable domestic and overseas demand helped boost activity, RatingDog analysts said. Domestic demand remained underpinned by supportive measures from Beijing, while overseas demand improved amid easing trade tensions with the United States.
But RatingDog analysts also noted that while the service sector continued to outperform, persistent deflation in output prices and profits suggested that this outperformance may be imbalanced.
“While this short-term boost is positive for business activity, the ongoing pressure on corporate profits could create negative feedback in the long term,” Yao Yu, Founder at RatingDog said in a note.
The positive services PMI comes after RatingDog manufacturing PMI data released earlier this week also showed an improvement in Chinese manufacturing activity.
The prints largely contrasted with government data released earlier in the week, which showed manufacturing activity contracted more than expected in August, while non-manufacturing activity barely expanded.