China's Caixin services PMI for August, released on September 3, recorded a reading of 54, a decrease of 0.1 percentage point lower from July, and was in the expansion range for four consecutive months. The Caixin China manufacturing Purchasing Managers' Index for August rose 0.3 percentage points from July to 53.1. As the growth rate of the manufacturing MPI outpaced the decline in service PMI, the Caixin China Composite Index rose by 0.6 percentage points to 55.1 in August, the second highest since January 2011 and only lower than June this year. The index of new orders for services continued to edge down in August, but remained in expansion range for the four consecutive months. Companies with sales growth during the month generally report that the resumption of work has driven an increase in the number of customers. The composite new orders index fell to its lowest level in nearly three months but remained in expansion range, supported by continued gains in manufacturing orders. The index of new export orders for the service sector has been in contraction territory for two consecutive months, with a slight decline. According to the companies surveyed, the epidemic continues and global demand continues to be negatively impacted. In August, service-sector companies ended six months of contraction in employment and the employment index returned to expansion range. Service charge prices picked up in August, with companies surveyed saying they had raised their charge prices due to higher input costs. The rate hike was slight but the highest since December 2019. Manufacturers continued to raise prices slightly, and composite output prices rose significantly to their highest level in nearly two years. Wang Zhe, a senior economist at Caixin, said the rapid recovery of the manufacturing and service sectors from the epidemic remains the main theme of the current economic operation. Service sector employment picked up in August, and manufacturing employment was close to a turning point. At present, there are still uncertainties in the development of the epidemic abroad, which may pose constraints on the construction of the domestic and international dual cycles.