China’s services sector activity moderated its contraction in May

According to the Purchasing Managers’ Index (PMI), activity in the Chinese services sector declined last May. CaixinWhich stood at 41.4 points from 36.2 last month, however, the second-fastest rate of decline since February 2020.

total in May new business Demand fell for the fourth consecutive month as a result of the impact of COVID-19 restrictions on demand. Similarly, deteriorating operating conditions led to a further decline in employment in the services sector and a sustained increase in pending business.

export

“The local COVID outbreak continued to damage the service sector. Due to the impact of epidemic control measures, in particular the travel ban, the new trade indicator of export remained in negative territory for the fifth consecutive month,” said senior economist Wang Zhe Caixin Insight Group,

Thus, the overall PMI for China for the month of May stood at 42.2 points as against 37.2 rounds off the previous month, representing the second highest rate of contraction in activity in the previous month. Private Sector From February 2020.

“The damage from the latest wave of domestic outbreaks could exceed 2020,” he warned. wang zheFor which legislators need to pay more attention to employment and logistics.

“Furthermore, the government should not only offer support on the supply side, but also offer subsidy For those whose income has been reduced by the pandemic,” he said.