The China’s Caixin Services PMI for May stood at 41.4 points, vs. 47.3 expected and 36.2 from the previous month, showing that the contraction of the country’s services activity is extending.
Service sector activity in China falls at a softer pace, but still hardamid restrictions due COVID-19.
Wang Zhe, senior economist at Caixin Insight Group, said: “May’s reading was the second lowest since February 2020, since the Covid-19 epidemic in China continues to weigh on the activities of the services sector“.
“Both supply and demand in the services sector contracted further. The services PMI and total new business gauge for May rose from recent April lows, but May’s readings were still well below 50. This shows that local Covid outbreaks continue to weigh on the services sector. Due to the effects of epidemic control measures, especially travel restrictions, the new export business indicator remained in negative territory for the fifth consecutive month,” he added.
Source: Fx Street
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