In June, The PMI Of Caixin China's Service Industry Dropped To 52, The Lowest Since March.

In July 3rd, Caixin's general service industry activity index (PMI) in June was 52, down 0.7 percentage points from May, the lowest since March this year. 　　

Previously released in June, Caixin China's manufacturing PMI dropped to 49.4, and the two major industries PMI declined, dragging down the total PMI of new China in June to 50.6, lower than 0.9 percentage points in May. 　　

The trend of service industry and comprehensive PMI in Caixin China is consistent with that of Statistical Bureau PMI. In June, the National Bureau of Statistics announced a 53.4 index of business activities in services, a slight drop of 0.1 percentage points over May, and a consolidated PMI of 53, down 0.3 percentage points. 　　

Customer demand was boosted by factors such as stimulus policies, new product launches and better market conditions. In June, the total growth rate of new orders in service industry was slightly stronger, showing signs of acceleration. The total volume of new orders in manufacturing industry is affected by trade friction. Orders for the two major industries rose one by one, while the growth rate of new orders in June was slower than that in May. 　　

In June, the volume of new export orders in manufacturing and service industries declined, and export market performance was weak. The new export orders for services sector fell for the first time in nine months. Enterprises reflected that weak external demand and superimposed tariff problems led to a decline in the number of new export orders. The new export orders for manufacturing industry returned to the contraction zone, but the overall decline was small. 　　

Comprehensive employment data show that the scale of employment has contracted for second consecutive months, and the contraction rate is close to that of May. The decrease of comprehensive employment is mainly caused by the decline of manufacturing employment. The employment scale of the service industry is basically flat with that of last month. Some service enterprises increased employment due to the increase in the demand for orders, but some enterprises did not fill the vacancy after their voluntary turnover. 　　

In June, the cost of services increased somewhat. According to the respondents, the increase in costs is mainly related to the increase in procurement and the rise in pay caused by the expansion of the company. Manufacturing input costs rose moderately. In the two major industries, input costs continued to remain at historically low levels, which was basically the same as in May. 　　

In June, the service charges and manufacturing prices rose slightly, the overall increase was the highest in three months, but the increase was moderate. The rate of increase in service enterprises is still slight, similar to that in May. In June, the manufacturing factory prices rose slightly in May. 　　

In June, confidence in manufacturing industry was barely optimistic, while optimism in the service sector continued to be strong. On the whole, the confidence of the two major industries and enterprises in the next 12 months' production and business prospects has dropped to two in April 2012 for the first time in a row. Some manufacturers expect that new products and expansion plans will help boost production in the coming year, while others are worried about Sino US trade disputes. 　　

Zhong Zhengsheng, chairman and chief economist of the new capital think-tank, said that the downward pressure on China's economy increased in June. The Sino US dispute had a strong impact on corporate confidence, and the impact of short-term exports has not been fully reflected, but the follow-up is not optimistic. The policy of steady growth will focus on new infrastructure, consumption and high quality manufacturing.