Covid-19-reduced consumption
China’s services sector signed in August, official figures were revealed on Tuesday as Covid-19 reduced consumption.
The official Non-Manufacturing Purchase Manager Index (PMI) was recorded at 47.5 against the previous month’s 53.3.
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Anything above the 50-point mark represents growth, but the following is contraction.
The steady rise in consumption has boosted the services sector in recent months, but it has been slower to recover from the pandemic than it was manufacturing.
However, the outbreak of the coronavirus has resulted in strict lockdown measures, which has negatively affected business activities.
IG’s Kyle Rodda told the Guardian that the PMI figures are “very disappointed,” suggesting that the Chinese economy is facing a slowdown.
“The manufacturing survey only missed a small estimate printed at 50.1 against a consensus forecast of 50.2. However, the non-manufacturing survey is a true smell, with headline numbers down from 53.3 last month. It’s well below the expected 52.1 figure.”
“It clearly doesn’t tell the overall story for China’s economy, but PMI is the weakest since the Covid-19 collapse in February 2020, with the delta outbreak last month revealing the impact of the outbreak in the country. growth.”
