By Gina Lee

Investing.com – China’s services sector made a in September as a major COVID-19 outbreak in the eastern province of Jiangsu was brought under control. Even though this has helped to stabilize the economy, it is possible that COVID-19 could again hamper recovery.

The , released earlier in the day, was 53.4 in September, compared to the previous month’s 46.7 figure. Caixin, which is focused on the private sector and measures growth, rose to the mark of 50, indicating that it has moved away from its one-year lows.

At the end of September the National Bureau of Statistics released the. It was 53.2.

Services sector recovery from COVID-19 has taken longer than that of the manufacturing industry. The sector is more vulnerable to COVID-19-related shocks that can impact travel and consumption, so the prospects for a recovery are uncertain.

Wang Zhe, a senior economist at Caixin Insight Group, said that the government must focus its efforts on controlling epidemics and reducing supply-side pressure in light of these facts.

It should balance multiple goals, including promoting employment and stabilizing raw material prices, assuring a steady and ordered supply and meeting energy consumption targets.

The 15th consecutive September month saw an increase in input prices. However, the pace of this growth was faster. According to Caixin’s survey, factory activity contracted last month due to rising labor, freight and raw material prices.