Caixin services PMI fell in July to 51.7 from 52.7 the previous value. The index was also lower than the official data on business activity index of the services sector, which amounted to 53.9 points.

Caixin PMI is a leading indicator of China's state sector services. A value above 50 indicates growth, while falling below this level indicates contraction.

All index categories showed signs of deterioration. The greater deterioration observed in the employment category, which kept growing in the last three months.