BEIJING, July 3 Reuters China39;s services activity expanded at the slowest pace in eight months and confidence hit a fouryear low in June, dragged by slower growth in new orders, a privatesector survey showed on Wednesday, suggesting more economic stimulus is needed.

The CaixinSP Global services purchasing managers39; index PMI eased to 51.2 from 54.0 in May, marking the lowest reading since October 2023 but remaining in expansionary territory for the 18th straight month. The 50mark separates expansion from contraction.

The survey, which covers mostly private and exportoriented companies, aligned with a broader official PMI released on Sunday that showed activity in the services sector plumbed a fivemonth low.

The world39;s secondlargest economy has reported patchy growth in recent months, reinforcing calls for more policy support to achieve an ambitious growth target of around 5.

The new orders subindex fell to 52.1 in June from 55.4 the previous month. Overseas demand also eased slightly even on top of strong exports in May.

Business confidence levels eased to the lowest level since March 2020 with concerns about the global economy and rising competition.

Service providers were scaling back hiring again last month after adding employment in May.

But slower rates of inflation for both input and output prices offered a respite to business owners who were grappling with higher input material, labour and transport costs.

The CaixinSP39;s composite PMI, which tracks…