China’s services sector expanded at the slowest pace in nine months in January as growth in total new business and new export business softened, reported Caixin on Wednesday.
The Caixin China General Services Business Activity Index, which gives an independent snapshot of operating conditions in the services sector, fell to 52 in January from 56.3 the previous month. A number above 50 indicates an expansion in activity, while a figure below that points to a contraction.
The dip follows a slowdown in manufacturing activity in January, with the Caixin China General manufacturing PMI, released Monday, declining to 51.5 from 53 the previous month. The Caixin China General Composite PMI, which covers both manufacturing and services sectors, slid to 52.2 from 55.8.
“Overall, the manufacturing and services industries continued to recover in January, but the momentum of both supply and demand weakened, dragged by subdued overseas demand,” said Wang Zhe, senior economist at Caixin Insight Group. “This year, we need to keep an eye on the effectiveness of domestic epidemic prevention, and look at how to add momentum to the Chinese economy as uncertainties about overseas demand continue.”