The non-manufacturing business activity index remained in expansion territory

Data show that in the non-manufacturing PMI individual indexes, the input price index and the sales price index rose from the previous month, rising by 1.8 and 1.9 percentage points respectively; The new orders index, the new export orders index, the orders in hand index, the inventory index, the employment index, the supplier delivery time index and the business activity expectations index declined from the previous month, falling between 0.1 and 1.4 percentage points.

CAI Jin, vice president of the Federation of Logistics and Purchasing, pointed out that in July, although the non-manufacturing business activity index fell 1.7 percentage points from the previous month, it was still 51.5%, and the non-manufacturing industry maintained steady growth, circulation links tended to be active, and enterprises were more willing to purchase. New growth drivers continue to improve, and development is more resilient. In the second half of the year, with the gradual implementation of relevant policies to expand domestic demand, the activities of related industries in construction and service industries will continue to develop well, and the endogenous growth momentum of China’s economy is expected to increase.

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Logistics information center Wu Wei said that affected by high temperature and rainy weather, construction activity has been adjusted back, which is the main factor leading to the slowdown of non-manufacturing growth. Aside from the short-term impact of the construction industry, positive factors in service consumption-related industries have emerged, which has better supported the steady growth of non-manufacturing industries. On the whole, although affected by high temperature and rainy weather, the off-season of construction activity is adjusted back, but the change of consumption-related service industry reflects the release of consumer demand in China is better.

In the second half of the year, with the gradual implementation of the relevant policies of the Political Bureau of the CPC Central Committee on expanding domestic demand and boosting confidence, the endogenous growth momentum of China’s economy is expected to continue to strengthen. Driven by the steady and healthy development of the real estate market and the continued acceleration of infrastructure investment, the release of demand for the construction industry is expected to strengthen. With the gradual implementation of the policy of expanding domestic demand, terminal consumption demand will continue to be boosted, which will stimulate the effective supply of service consumption-related industries, and promote the sustained recovery of the service industry. The active capital market will also drive the related capital market service industry activities to rise, boosting market confidence and consumer confidence.