China and Italy services PMIs show slower growth

China’s services PMI stayed in expansion at 54.1 in June, above expectations. Italy’s PMI was 50.2, below forecasts, signaling slower growth. Forex markets showed little reaction.

China’s services sector continued to expand in June, with the RatingDog China General Services PMI at 54.1. This figure is slightly down from May’s 54.4 but remains above expectations. The sector benefited from robust new orders and a revival in overseas demand, while input cost inflation eased. China’s official non-manufacturing PMI also surpassed expectations at 50.2, marking a second consecutive month of expansion. Telecommunications, IT, and financial services led the gains, though real estate and air transport continued to lag. In Italy, the HCOB Services PMI registered 50.2 in June, falling short of forecasts and indicating a slowdown in growth. Despite positive readings, the expansion in Italy’s services sector was weaker than anticipated. Forex markets reacted calmly to China’s data, with minimal movement in EUR/USD and USD/JPY pairs, reflecting a cautious market response. Overall, both China and Italy’s services sectors remain in expansion, though growth is moderating.