BEIJING, Oct 8 (Businesshala) – Activity in China’s services sector picked up again in September as a major COVID-19 outbreak eased in the eastern province of Jiangsu, with a private sector survey on Friday giving some support to the slowing economy. offered.
The Caixin/Market Services Purchasing Managers’ Index (PMI) rose to 53.4 from 46.7 in August, far from the lowest level seen since the height of the pandemic last year. The 50-point mark separates growth from contraction on a monthly basis.
The improved readings in the survey, which focused more on smaller firms in coastal areas, are in line with findings from an official survey last week, which also showed that the services industry has returned to activity growth.
Analysts say the services sector, which was slower to recover from the pandemic than manufacturing, is hit by sporadic COVID-19 outbreaks in the country, tarnishing the outlook for the much-awaited rebound in consumption in the coming months .
“Given this, in the coming months, the government should focus on improving epidemic prevention and control and easing supply-side pressure,” said Wang Zhe, senior economist at Caixin Insight Group.
“It must also find a balance between several objectives, such as promoting employment, keeping raw material prices stable, ensuring a stable and orderly supply, and meeting the goals of controlling energy consumption.”
The sub-indices of new business, price charged, and employment all returned to expansionary territory in September, although new export business shrank again, touching a seven-month low due to the growing pandemic overseas.
Input prices rose for the 15th consecutive month in September and rose at a faster pace, driven by rising costs of labour, freight and raw materials, the survey found, an issue that pushed factory activity into contraction last month.
Caixin’s September composite PMI, which includes both manufacturing and services activity, rose to 51.4 in September from 47.2 in the previous month, fueled by strength in the services sector. (Reporting by Stella Qiu and Ryan Woo; Editing by Sam Holmes)