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- China's service sector growth loses momentum in January
China's service sector growth loses momentum in January
RTTNews reports that survey results from IHS Markit showed that China's service sector growth slowed in January as demand was dampened by the ongoing Covid-19 pandemic.
The Caixin services Purchasing Managers' Index fell to 52.0 in January from 56.3 in December. However, a score above 50 indicates expansion in the sector. The reading signaled the slowest rate of growth recorded over the current nine-month period of expansion.
New work received by services companies grew at the slowest rate since last August. New orders from overseas gained at the weakest pace in three months as the recent rise in virus cases weighed on global demand. Services companies in China added to their staffing levels for the sixth month running, but the rate of job creation eased further.
Although business confidence regarding the 12-month outlook for activity remained strong in January, the degree of positive sentiment weakened since December.
The composite output index came in at 52.2 in January, down from 55.8 in December, to signal only a moderate rise in overall output.
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