China: first signs of growth in the services sector

First slightly positive signals coming today from China, with the service sector in the month of June shows a slight recovery. After the manufacturing industry continues to falter, the indicator on the scale services is the uncertainty among investors about the direction of the second largest economy in the world.

In June, the Purchasing Managers Index (PMI) service managers developed by Caixin and Markit rose to 52.7 points from 51.2 in May, indicating the nation's services sector recovery. Beats analysts' expectations which were for a level of 52.3.

The ascent of June marks the second consecutive monthly increase, indicating a recovery test in place of the nation's services sector, thanks to Beijing's efforts to shore up growth. "This is the highest index for the services of the last eleven months," Zhong Zhengsheng, Caixin Group Insight economist, said.