BEIJING (Reuters) – Activity in China’s services sector grew at its slowest pace in five months as rising coronavirus cases and lockdowns weighed on new businesses and consumer sentiment, show the results of a private investigation published on Monday.
The services PMI index calculated by Caixin/Markit fell to 51.4 in January – its lowest since August – from 53.1 in December. The 50 point mark that separates growth from contraction on a monthly basis.
This result should reinforce market expectations, which believes that Beijing must deploy more support measures to stabilize the economy.
The new business sub-index came in at 51.1 in January, down from 52.5 the previous month.
Some service providers attributed the slowdown to the resurgence of the coronavirus outbreak. In addition, rising overseas cases weighed on external demand and new export orders contracted for the first time in four months.
Input costs rose at a stronger pace in January, while prices charged hit a three-month high.
The Caixin composite index for January, which includes both manufacturing and services activity, fell to 50.1 from 53 in December.
(Report Stella Qiu and Ryan Woo; French version Camille Raynaud)
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