China’s services sector activity grew at a weaker pace in October, as the country battles small-scale Covid-19 outbreaks mostly affecting the northern provinces, reports Reuters. According to data from the National Bureau of Statistics, the official non-manufacturing Purchasing Managers’ Index (PMI) dropped to 52.4 in October from the previous month’s 53.2.
The 50-point mark separates growth from contraction on a monthly basis.
Analysts say the services sector, which was slower to recover from the pandemic than manufacturing, is more vulnerable to sporadic COVID-19 outbreaks, clouding the outlook for the much anticipated rebound in consumption in the months to come.
The official October composite PMI, which includes both manufacturing and services activity, fell to 50.8 from September’s 51.7.