China’s services sector activity expands at slower pace amid rising inflation pressures, Covid-19 outbreaks
- Caixin/Markit services purchasing managers’ index (PMI) fell to 52.1 from 53.8 in October
- On Sunday, China’s official non-manufacturing PMI, which measures business sentiment in the services and construction sectors, fell to 52.3 from 52.4 in October
Activity in China’s services sector expanded at a slower pace in November amid rising inflationary pressures and continuing small-scale coronavirus outbreaks, a private survey showed on Friday.
The Caixin/Markit services purchasing managers’ index (PMI) fell to 52.1 in November from 53.8 in October, but remained above the 50-point mark that separates growth from contraction on a monthly basis.
Analysts said the services sector, which has been slower to recover from the pandemic than manufacturing, is more vulnerable to sporadic coronavirus outbreaks and antivirus measures, clouding the outlook for a much anticipated rebound in consumption in the months to come.
China’s leisure and tourism businesses have been feeling the heat from the country’s zero tolerance coronavirus strategy to contain infections.