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China’s April service sector activity contracts for second month – official PMI -Breaking

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© Reuters. FILEPHOTO: A coronavirus epidemic has seen workers wearing masks leave their dorm in Shanghai. REUTERS/Aly Song

BEIJING (Reuters – China’s service sector activity fell for the second month in a row, an official survey revealed on Saturday. Many cities are paralyzed by widespread COVID-19 locking downs.

According to the National Bureau of Statistics, April’s official Non-Manufacturing PMI (Purchasing Managers Index) was 41.9, down from 48.4 March.

An increase in activity is indicated by a reading over 50 points, while contraction occurs when the reading falls below this mark.

Numerous major Chinese cities, including Shanghai’s commercial center, are thought to be under partial or full lockdown. People are trapped in their homes by hundreds of million of Chinese citizens, causing a severe drop in consumption. Analysts have begun to reduce growth estimates for the second-largest country’s economy.

China’s composite PMI (which includes manufacturing activity and services activity) was 42.7 in March, as opposed to 48.8 in March.

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