The recent rise of Chinese delta variants has sparked concerns
Data emerging from China revealed that the country’s services sector had surged in July, reaching its highest level since May.
However, the continued spread of coronavirus delta mutants remains a concern and poses a threat to full recovery.
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Caixin /Markit Services Purchasing Managers’Index (PMI) rose to 54.9 in July, up 4.6 from the previous month. Values above 50 represent monthly growth rather than contraction.
So far, the recovery in China’s services sector has been outweighed by the recovery in its manufacturing sector.
However, the recent rise in delta variants has sparked concerns and has led to an element of uncertainty in China’s outlook.
According to Wang Zhe, senior economist at Caixin Insight Group, July figures suggest that Covid-19 is successfully included in the southern region of China, but he said the latest outbreak was in August He said it could have a negative impact on PMI numbers.
“The economy is still facing significant downward pressure and we need to ensure that business owners have confidence,” Wang said.
