China’s Services Activity Extends Contraction Amid Covid Outbreaks, Caixin PMI Shows

China’s services activity contracted for the second consecutive month in October, as Covid-19 outbreaks and strict containment measures disrupted business operations and crippled overseas demand, a Caixin-sponsored survey showed on Thursday.

The Caixin China General Services Business Activity Index, which gives an independent snapshot of operating conditions in services industries such as retail and travel, dropped to 48.4 in October from 49.3 the previous month. A number above 50 indicates an expansion in activity, while a figure below signals a contraction.

The indicator, also known as the Caixin China services PMI, is one of the earliest available monthly indicators of business activity in the world’s second-biggest economy.