Economic data published today (Wednesday) showed a sharp contraction of the service sector activity in China during last March, in light of the recent rise in the number of new infections with the Corona virus emerging in China, and the re-imposition of restrictions on movement in many regions to limit the spread of the virus, which reduced service activities. According to the German news agency.
The Caixin index of purchasing managers of the services sector in China fell last month to 42 points, compared to 2.50 points in February (February); This is the largest decline in the index since the start of the Corona outbreak in February 2020.
It is noteworthy that a reading of the index less than 50 points indicates a contraction in the economic activity of the sector, while a reading of more than 50 points indicates a growth in activity.
The sub-index of total new business for the service sector in China during the past month recorded the fastest decline since March 2020. The imposition of restrictions to limit the renewed spread of the emerging Corona virus led to a decline in the number of customers and a deterioration in demand conditions for the service sector.
The employment index also declined in March, but by a small percentage. Companies faced a rise in unpaid liabilities due to disruption of business operations and business conduct.
At the same time, the composite purchasing managers’ index for the services and manufacturing sectors declined to 9.43 points last March, compared to 1.50 points last February. This reading reflects a renewed decline in the activities of the manufacturing and services sectors; Where the latter declined more frequently.
