Business News Asia
According to the Markit and Caixin survey, activity in China’s services sector contracted further in October as measures to combat the COVID-19 epidemic affected the corporate sector and consumption. This is expected to overshadow China’s economic recovery in the final quarter of this year.
The Purchasing Managers’ Index (PMI) for the services sector fell to 48.4 in October, its lowest level since May this year (49.3 in September), as COVID-19 cases rose. The increase has caused disruptions and undermined consumer confidence.
An index below 50 indicates that the Chinese service sector is still in a contraction phase.
On Monday, the National Bureau of Statistics (NBS) reported that the service sector PMI fell to 48.7 in October from 50.6 in September.
Chinese authorities have quietly imposed lockdowns on several areas since the Chinese Communist Party’s General Assembly. The lockdown affects major cities such as Shanghai, Zhengzhou, and Guangzhou, affecting production and people’s livelihoods.