China’s services activity growth momentum softens in February, but still expands for 14th consecutive month

Caixin/S&P Global services purchasing managers’ index (PMI) edged down to 52.5 from 52.7 in January

Outcome is in contrast to an official survey last week, which showed services activity expanded at a faster pace

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China’s Caixin/S&P Global services purchasing managers’ index (PMI) edged down to 52.5 from 52.7 in January. Photo: Bloomberg

Published: 9:59am, 5 Mar 2024

China’s services activity grew at a slower pace in February, with business confidence moderating for the second month and firms trimming staff numbers for the first time since November, a private-sector survey showed on Tuesday.

The Caixin/S&P Global services purchasing managers’ index (PMI) edged down to 52.5 from 52.7 in January, but was still above the 50-mark that separates expansion from contraction for the 14th consecutive month.

The outcome is in contrast to an official survey last week, which showed services activity expanded at a faster pace, providing a mixed picture of conditions in a vital sector of the economy.

Authorities are counting on services to pick up the slack of the manufacturing sector as it struggles to motor on amid slow global demand.

Despite robust activity during the eight-day Lunar New Year holiday, the expansion rate of new business was little-changed from January, the Caixin survey showed.

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