China’s Services Sector Slumps Further as Covid Battle Intensifies, Caixin PMI Shows

As multiple cities across China rolled out strict measures to stamp out Covid outbreaks, business activity in China’s service sector in April contracted at the steepest pace since February 2020, when the pandemic started to take hold.

The Caixin China General Services Business Activity Index, which gives an independent snapshot of operating conditions in the sector, fell for the fourth consecutive month to 36.2 in April from 42 the previous month, a Caixin-sponsored survey report showed Thursday. A number above 50 indicates an expansion in activity, while a figure below that points to a contraction. The indicator is also known as the Caixin China services PMI.