Services activity in China grew at a slower clip and inflationary pressure mounted last month, a Caixin-sponsored survey showed Wednesday, adding to evidence that the economic recovery might be losing momentum as growth in manufacturing also reportedly slowed.
The Caixin China General Services Business Activity Index, which gives an independent snapshot of operating conditions in the services sector, declined to 51.5 in February from 52 the previous month, hitting the lowest level since April 2020.
Both supply and demand in the services sector grew at a slower clip. The measure for new business dropped to the lowest in 10 months, though it remained in expansionary territory. Overseas demand worsened as new export orders shrank for the first time in four months.
“While a number of firms commented on firmer client demand, there were reports that the recent resurgence of Covid-19 cases globally had dampened sales growth,” London-based data analytics firm IHS Markit, the company that compiles the Caixin PMIs, said in a statement Wednesday.