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Service sector expansion slows in January

By Zhou Lanxu | chinadaily.com.cn | Updated: 2020-02-05 10:48
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Employees of an engineering machinery manufacturer in Shandong province work on the company's production line of loaders. [Photo/Xinhua]

A privately surveyed purchasing managers index for China's service sector slid to a three-month low last month, indicating a slower expansion of the sector in January.

The Caixin China General Services PMI, released on Wednesday, fell for the second consecutive month to 51.8 in January versus 52.5 for the month before, as the sector saw a slower increase in new orders and stopped expanding employment in general.

Yet the PMI reading still stood above the boom-or-bust line of 50 that separates expansion from contraction.

"China's economic recovery was not strong enough due to limited improvement in demand, and some companies didn't replenish inventories," said Zhong Zhengsheng, chairman and chief economist at CEBM Group, a Caixin subsidiary. "As the pneumonia epidemic is putting pressure on the economy, policymakers need to make efforts to ensure no major disruptions to improving business confidence."

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