External demand boosts China's services

The service sector in China experienced a slight slowdown in its growth in June, despite the strength of external demand, which recorded its highest performance in 20 months, with overall economic activity continuing to expand. The Purchasing Managers' Index (PMI) for the services sector stood at 54.1 points, down from 54.4 in May, amid rising service prices and increased corporate employment in response to growing demand. Growth remains heavily reliant on exports, especially in the technology sector, while the real estate market and domestic demand face challenges. The government is expected to implement supportive measures to boost the economy, with continued dependence on external demand to achieve the growth target for 2026.

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