BEIJING: Growth in China’s June services sector slowed sharply to a 14-month low, after a resurgence of Covid-19 in southern China, a private survey showed on Monday, adding to concerns the world’s second-largest economy may be losing some momentum.
The Caixin/Markit services Purchasing Managers’ Index (PMI) fell to 50.3 in June, the lowest since April 2020 and down significantly from 55.1 in May. It held just above the 50 mark, which separates growth from contraction on a monthly basis, report agencies.China’s official services gauge also showed a marked slowdown in June, though it remained well in expansion territory. The private survey typically focuses more on smaller companies.
Coupled with a manufacturing slowdown, analysts said the findings suggest that pent-up Covid-19 demand may have peaked and China’s robust economic rebound from the crisis is starting to moderate.