China’s service sector activity contracted in April at the second-strongest pace on record, as the strictest Covid-19 restrictions brought the industry to a halt, leading to sharper reductions in new business and jobs, a private sector survey showed. on Thursday (5).
The Caixin Services Purchasing Managers’ Index (PMI) dropped to 36.2 in April, the second lowest since the survey began in November 2005, from 42 in March.
The index reached 26.5 in February 2020 during the start of the pandemic, which represents the biggest contraction in activity on record.
The 50 mark separates growth from contraction.
The pessimistic results of the survey, which focuses more on small businesses in coastal regions, are in line with the government’s official PMI, pointing to rapid deterioration in a sector that accounts for about 60% of the economy and half of urban jobs.
The new business sub-index came in at 38.4, also the second-weakest and down from 45.9 the previous month, with service companies reporting that intensified measures to contain the spread of Covid-19 cases weighed heavily on the economy. customer demand at the beginning of the second quarter.
Caixin’s April Composite PMI, which includes both manufacturing and services activity, dropped from 43.9 to 37.2 from a month earlier.
Source: CNN Brasil
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