“Competition in the sector was still fierce, and boosting sales through price cuts became a priority for businesses,” Wang Zhe, senior economist at Caixin Insight Group, said in a statement. “Surveyed companies adopted a cautious approach to hiring to save costs, leaving the labor market under pressure.”
China’s services activity expanded less than expected, a private survey showed, adding to worries over the economy’s health.
The Caixin China services purchasing managers’ index fell to 51.6 in August, compared with 52.1 the previous month, according to a statement released by Caixin and S&P Global on Wednesday. The median forecast of economists surveyed by Bloomberg was 51.8. Any reading above 50 suggests an expansion.
