Caixin China manufacturing PMI falls to two-year low

CIPS’s business activity index for services fell from 58.5 in June to 57.4 in July, signalling an easing of growth.

China’s factory activity is down to lower levels than initially estimated in July, shrinking the most in two years as new orders fell.

Economic activity in the U.S. service sector rebounded in July from a five-month low, but service providers’ confidence about the year ahead dipped to its lowest level since June 2012, the Markit research firm reported Wednesday.

The report followed a downbeat official survey on Saturday, which showed growth at manufacturing firms unexpectedly stalled, reinforcing views that the struggling economy needs more stimulus, even as it faces fresh risks from a stock market slump.

But business expectations in the sector were at their weakest since December, although they remained high overall.

And survey compiler Markit suggested the upturn was relying on financial services companies, which in July enjoyed their best month since 2013.

The global Markit manufacturing PMI held steady at 51.0 in July.

The Nikkei Singapore PMI is based on data compiled from monthly replies to questionnaires sent to executives in over 400 private sector companies, selected to represent the structure of Singapore’s economy, including manufacturing, services, construction and retail.

Industrial growth unexpectedly slipped to 2.7 percent in May, while moderation in core sector growth to 3 percent in June suggested it could slide further. Still, Britain’s service sector expansion was the second-fastest among major European economies. The US also remained close to the top of the global manufacturing output growth league table, seeing its rate of expansion pick up to a three-month high.

Manufacturing output expanded for the third month in a row, albeit at a slower pace, with the index at 51.6 for July compared with 52.9 in June.