By Gina Lee

Investing.com – China’s services sector , a private survey showed on Thursday. The industry is still struggling under the tough confinement measures that were put in place to stem the spread of COVID-19 epidemics.

The was 50.2 in February 2022, lower than the 50.9 predicted in Investing.com forecasts and January’s 51.4 figure. This is growth.

These data follow Tuesday’s release which indicated that the sector services had 51.6. It was 50.4, and 50.2 respectively.

Numerous cases of COVID-19 have been ravaging the country’s services industry, which has seen numbers surpass 50,000 in the Special Administrative Region Hong Kong. Demand has been dampened by measures taken to stop the spread of COVID-19.

The number of new export businesses fell for the second month in a row, although at a slower rate. The fall in China’s payrolls was not as severe, however.

The demand for services declined while the supply increased at a slow pace. Wang Zhe from Caixin Insight Group, a senior economist said that COVID-19 had spread to several areas and affected service company business operations.

He stated that policymakers need to enhance the support policies in order to promote employment and strengthen structural support for small, medium and large enterprises. They also need effective ways of reducing tax burdens and raising funds for companies.

The focus is now squarely on the 13th National People’s Congress, whose fifth annual session, which begins on Mar. 5. The government will reveal the 2022 economic goals, while expectations are growing for additional stimulus measures.

Caixin also found that inflationary pressures have begun to fall, according to the survey. The survey also revealed that companies are optimistic about a stronger economic recovery following COVID-19.