China services growth slows as inflation rises

China's services industry saw growth cool off in May.

The closely watched Caixin/Markit Purchasing Managers' Index for the sector fell to 55.1.

That was down from April's 56.3, albeit still well above the 50-point mark that signifies rising activity.

The survey attributed the slowdown in part to softer demand from overseas.

A gauge of export orders slipped into contraction.

Mounting inflationary pressure is the other issue.

Input costs rose at a sharper rate in May, with reports of rising costs for raw materials, energy, staff and transport.

Firms raised their selling prices for a tenth straight month as a result, but not enough to keep up with input costs.

A Caixin economist called the inflationary pressure "enormous".

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