Activity in China’s services sector grew for a 14th straight month in February, but at a slower pace than the previous month, with the sharpest contraction in employment since December 2022, according to a Caixin-sponsored survey released Tuesday, reports Caixin.
The Caixin China General Services Business Activity Index, which provides an independent snapshot of operating conditions in industries such as retail and tourism, fell 0.2 points in February from the previous month to 52.5. A reading above 50 indicates an expansion in activity, while a number below signals a contraction.
The index, also known as the Caixin China services PMI, is one of the earliest available monthly indicators of business activity in the world’s second-largest economy. The services sector accounted for more than half of China’s GDP last year, according to government data. The official services PMI, released by the National Bureau of Statistics (NBS) on Friday, rose 0.9 points to 51 in February.