China's service sector in June grew too slowly to counteract a wider loss of momentum in China’s economy, Reuters reported. Numbers released by the National Bureau of Statistics showed service PMI at 53.9, a 9 month low, while a Markit/HSBC reading put the increase between 51.2 to 51.3. A reading above 50 indicates growth in the sector; below 50 indicates contraction. Experts attributed the slowing growth in the services industry to flagging construction projects, and have warned that employment will suffer as service growth wanes. Chinese manufacturing continues to slow due to weakening foreign and domestic demand.
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