Daily Management Review

Analysts note slump in Chinese service sector activity


According to a private indicator, activity in China's services industry plummeted to its lowest level in April since the epidemic began in early February 2020, as rising steps to combat the virus put severe strain on consumer demand.

Caixin Media Co. and research firm Markit computed China's supply managers' index (PMI) for services, which decreased to 36.2 in April from 42.0 in October. This was demonstrated by statistics issued on Thursday by Caixin Media Co. and research firm IHS Markit.

The official non-manufacturing PMI in China increased to 41.9 in April from 48.4 in March.

The exports sub-index declined the most since May 2020, while the employment services sub-index fell slightly, staying in the contraction zone for the fourth month in a row, according to Caixin.

Higher raw material, fuel, and the cost of Covid-19 control measures aided a smaller but still significant rise in purchasing prices in April, according to Caixin.

Entrepreneurs are optimistic about bringing the Covid-19 breakouts under control, while some have expressed concern that the restriction measures may be too protracted, the sources noted.

source: dowjones.com