ACTIVITY in China’s services sector expanded at its fastest pace in 11 months in July, thanks to stronger new business, a private survey showed yesterday, a welcome development at a time when factories in the country are struggling.

    The services Purchasing Managers’ Index (PMI) compiled by Caixin/Markit rose to 53.8 from June’s 51.8. The July level is the highest since August 2014 and marks a 12th straight month of expansion.

    A sub-index measuring new business jumped to 54.0 from June’s 52.2 while the employment sub-index also edged up, indicating increased hiring on stronger new businesses.

    Both input prices and selling prices increased in July, indicating a slight pick-up in inflationary pressure.

    The Caixin PMI report did not specify if there was an impact on the services sector from the crash in the country’s stock markets from mid-June. A sharp rally early in the year had boosted performance for banks and brokerages, and gave a much needed lift to the cooling economy.

    (SD-Agencies)