Caixin China Services PMI (June 2017)

The Caixin China Services PMI fell to 51.6 in June from 52.8 in May. Smoothing outthe monthly volatility, the Q2 average reading is only marginally below Q1.

    Meanwhile, the official non-manufacturing PMI picked up in June. The divergencecan be explained by the construction sector (excluded by Caixin), and possibledifferences in sector weighting. But on a quarterly average basis, the two gaugesboth point to stable growth, albeit at a marginally softer pace. The June PMIssuggest that the manufacturing sector remains a key pillar of the growth recovery.

    This should remain the case in the rest of 2017.