China’s Caixin services PMI stood at 46.7 points in August compared to the 52.6 expected and the 54.9 of the previous month, which shows that the activity in the country’s services sector returned to a contraction in the reported month.
Key comments
“The index fell to the lowest level since the first wave of the pandemic in April 2020.”
“Industries of catering, transportation, accommodation and entertainment were the most affected due to the blockades driven by the outbreak of the Delta variant of the coronavirus “.
Commenting on the overall China services PMI data, Dr. Wang Zhe, Senior Economist at Caixin Insight Group, said: “Costs in the services sector were still under great pressure. amid high labor and transportation costs amid the resurgence of Covid-19 “.
“The slow market demand limited the bargaining power of the companies, which caused that prices charged by service providers will plummet after a month of growth, “said Wang.
“Delta is so terrible that people do not want to leave. Some additional business during the national holidays in the rest of the year will not make up for the loss of the summer vacation period,” he added.
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