The significant drop in Production especially that of manufacturing of food, beverages and tobacco products largely contributed for this decrease. New Orders and Stock of Purchases also decreased during the month.
Meanwhile, the time taken by the suppliers to deliver materials increased due to unfavorable weather conditions prevailed during the month and the tightened environmental regulations in China. As a result, the Suppliers' Delivery Time lengthened.
The Services Sector PMI increased to 58.7 index points in June 2018 from 56.9 index points recorded in May 2018 supported by faster growth in Business Activity, Employment and Expectations for Activity.The strong growth in Business Activities was mainly observed in financial services, health services and wholesale and retail trade sectors.
However, the pace of growth in transportation of goods and warehousing sector eased in June 2018 due to upward revisions to fuel prices.Expansion in business activities partly contributed towards the rise in employment levels to the highest since December 2015, which in turn led Backlogs of Work to decline.