China’s services sector growth slows, signaling economic weakness
Posted on September 9, 2024 |
China's services activity grew slower than expected in August, adding to concerns about the economy.
The Caixin China services index fell to 51.6 in August, down from 52.1 in July.
The IMF noted that China’s services sector is an underused growth driver, contributing far less than the advanced economy average of about 75%.
Growth in construction and services was modest last month, mainly due to summer holiday spending.
China’s $17 trillion economy still depends heavily on manufacturing and exports, but new challenges are arising.
China's factory activity contracted for the fourth month in a row in August, indicating ongoing economic difficulties.
These issues suggest that China might struggle to meet its 2024 growth target of around 5%.
