China’s Services Activity Falls at Second Lowest Rate on Record

Source: S&P Global

China’s services sector activity narrowed at the second-steepest rate on record in April, as tighter COVID limitations halt the industry. CNUYSD down -0.01%, CSI 300 down -0.15%

• The Caixin services purchasing managers’ index (PMI) dropped to 36.2 in April, the second-lowest since the survey started in November 2005 and down from 42 in March.
• A sub-index for new business came at 38.4, also the second-lowest level and down from 45.9 the prior month, with services firms posting the escalation of measures to contain the spread of COVID cases.
• The private-sector survey also signaled employment fell for the fourth straight month in April, even though the drop was marginal, compared with significant falls in the activity.
• Meanwhile, input costs jumped to a solid pace, but efforts by services firms to attract more business on lackluster demand pushed a drop in prices charged.
• Caixin’s April composite PMI, which comprises both manufacturing and services activity, plunged to 37.2 from 43.9 the prior month.