China’s service providers saw the first expansion in their businesses in four months in May, as domestic demand rebounded with the easing of the Covid-19 epidemic in the country, a Caixin-sponsored survey showed Wednesday.
The Caixin China General Services Business Activity Index, which gives an independent snapshot of operating conditions in the country’s services sector, jumped to 55 last month from 44.4 in April. A number above 50 indicates an expansion in activity, while a figure below that points to a contraction.
In February, the index, also known as the Caixin China services PMI, fell to a record low of 26.5 as the economy slowed to a crawl with restrictions to control the spread of the new coronavirus. In May, services activity grew at the fastest month-on-month pace since October 2010.
“Supply and demand both recovered quickly in the services sector,” said Wang Zhe, a senior economist at Caixin Insight Group. The measure for new business in the services sector reached its highest point in almost 10 years, returning to positive territory.