Business activity in China’s services sector in January grew at the slowest rate in five months, as a surge in Covid-19 cases and containment measures hurt new business.
- The Caixin/Markit Services Purchasing Managers’ Index (PMI) fell to 51.4 in January, the lowest since August from 53.1 in December. The 50-point score separates growth from a contraction on a monthly basis.
- The soft score is likely to reinforce market projections that policymakers need to roll out more support policies to stabilize the faltering economy.
- A sub-index for new business in the survey dropped to 51.1 in January, from 52.5 reported in the previous month.
- Wang Zhe, the senior economist at Caixin Insight Group, stated that the resurgence of COVID-19 in several regions like Beijing and Xian pushed local governments to tighten epidemic control measures.
Caixin’s January composite PMI, which measures both manufacturing and services activity, stood at 50.1, the lowest level since August and down from 53 from the prior month.
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Source: IHS Markit
