China’s services sector activity contracts less sharply in May
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© Reuters. FILE PHOTO – A woman passes chefs at work in the kitchen in Beijing’s shopping center in Beijing on December 15, 2020. REUTERS/Thomas PeterBEIJING, (Reuters) – China’s service activity declined less in May according to an official survey. This was despite COVID-19 restrictions being relaxed in certain cities.
Data from the National Bureau of Statistics revealed that PMI, which is an official index of non-manufacturing purchasing manager’s, rose to 41.9 in May from 41.9.
If the reading is above 50 points it indicates activity expansion, while below readings indicate contraction.
The fear of COVID-19 infection and possibly being quarantined led to many Chinese consumers avoiding shopping or dining out.
China’s official composite PMI measures both manufacturing and service activity. It was 48.4 in April, as opposed to 42.7 in April.
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