China's Services PMI marginally up in August

The headline Caixin China General Services PMI for August came in at 52.1, up 0.4 points from the previous month. The indexes for employment and business expectations improved markedly over July’s readings, while the others did not change much.

China's Manufacturing PMI slipped to 50.0

Operating conditions stagnated across China’s manufacturing sector during August, after a marginal improvement in the previous month. Production and total new orders both rose at slower rates, while export sales continued to decline. Job shedding meanwhile persisted, though the latest reduction in payrolls was the slowest seen in 2016 to date. This in turn contributed to a further rise in backlogs of work. Price pressures eased, with both input costs and prices charged increasing at weaker rates than seen in July.

China's CPI increased by 1.8%

Also, from China CPI and PPI data was published. Chinese inflation weakened further in July, adding to the central bank’s recent calls for more “innovative” monetary policies that stress liquidity as opposed to further rate cuts. China’s consumer price index (CPI) came in at an annualized 1.8% in July after slowing to 1.9% in June, the National Bureau of Statistics said in a report on Tuesday. The reading was in line with the median estimate of economists. Compared to June, consumer inflation rose 0.2%. The People’s Bank of China (PBOC) targets annual inflation at around 3%.

Rising food costs supported inflation through the first half of the year, with CPI reaching a nearly two-year high of 2.3% in February. That level would be maintained for an additional two months before weakening again in May. Factory-gate prices declined for a 53rd consecutive month in annualized terms, government data showed on Tuesday. The producer price index (PPI) fell 1.7% in the 12 months through July. The rate of contraction in producer prices has eased in each of the past seven months, a sign that the worst of the manufacturing downturn had passed.

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China's Services PMI declined to 51.7 in July

The headline Caixin China General Services PMI for July came in at 51.7, down 1.0 points from the reading for June. All of the index categories showed signs of deterioration, with employment falling back into the territory of contraction after three consecutive months of growth. The Caixin China Composite Output Index for July was 51.9, up 1.6 points from June’s reading, marking the highest level since September 2014.