Activity in China’s services sector grew at a slower rate in November amid surging inflationary pressures and continuing new COVID-19 waves.
Source: IHS Markit
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The Caixin/Markit services Purchasing Managers’ Index (PMI) dropped to 52.1 in November from 53.8 in October. The readings in the private survey coincide with those of an official survey, which also showed the growth in the services sector lost some momentum.
Analysts state the service sector is highly vulnerable to occasional COVID-19 outbreaks and anti-virus measures, hampering the outlook for a much-anticipated recovery in consumption in the upcoming months.
China’s leisure and tourism businesses have been struggling from the country’s zero-tolerance COVID-19 approach to control infections.
Caixin’s November Composite PMI, which incorporates both manufacturing and services activity, dropped to 51.2 from 51.5 the previous month.
Wang Zhe, the senior economist at Caixin Insight Group, stated that policymakers should support small and medium-sized enterprises.