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China’s services activity in September contracted for the first time in four months, as COVID-19 restrictions dented already fragile demand and dimmed business confidence, a private-sector business survey showed on Saturday.
The Caixin services purchasing managers’ index (PMI) fell to 49.3 from 55.0 in August as COVID containment measures disrupted supply and demand and restricted national travel.
An official survey published last week also showed services activity slowing, although its reading remained slightly above the 50-point mark that separates growth from contraction on a monthly basis.
China’s economy showed signs of improvement in August with faster-than-expected growth in factory output and retail sales, but is being held back by protracted COVID curbs and a worsening property slump.
“The current pandemic situation is still severe and complex, and the negative impact of COVID controls on the economy is still pronounced,” said Wang Zhe, senior economist at Caixin Insight Group.
