Economic Buzz: China Caixin Service Sector Contracts Sharply In April

5 May 2022 , 12:41 PM

Chinas service sector contracted sharply in April as the introduction of tighter COVID-19 containment measures led to quicker reductions in activity and new orders, survey results from S&P Global showed on Thursday. The Caixin services Purchasing Managers Index fell to 36.2 in April from 42.0 in March. A score below 50.0 indicates contraction. The survey showed that new business decreased at the second-steepest rate on record and new export orders fell at the sharpest pace in two years. Average input costs increased in April reflecting higher raw materials and fuel prices. Prices charged by services companies meanwhile fell for the first time in eight months. The Caixin composite output index, a weighted average of the manufacturing output index and the services business activity index, posted 37.2 in April, down from 43.9 in March. The rate of contraction was the second-sharpest in the series history. Powered by Commodity Insights