Us media attention: China’s service sector activity maintained expansion in January

2022-08-23 0 By

According to the Wall Street journal website reported on February 7, caixin media concepts and British research company released early Monday, January goods China general services business activity index (PMI) service industry fell to 51.4, shows the beginning of 2022, the new crown cases recovered, the prevention and control measures under the influence of overweight, corresponding services activities keep expanding in China,But momentum has waned.Previously, the services PMI rose to 53.1 in December 2021 from a three-month low of 52.1 in November, the report said.With the exception of a contraction in August last year, business activity in the service sector has grown every month since May 2020, the report added.The PMI fell sharply to 46.7 in August from 54.9 in July, the lowest since April 2020.Due to the sudden outbreak of COVID-19, the PMI for the service sector in February 2020 recorded 26.5, the first time since the survey began in November 2005 that the PMI fell below the expansion/contraction line.The PMI rebounded to 55.0 in May of that year from 44.4 in April, the first post-epidemic expansion.A reading above 50 indicates expansion in services activity, while a reading below 50 indicates contraction.On a sub-index basis, the total volume of new business increased slightly, the slowest pace since it resumed growth in September last year.This was partly due to external demand, with new export orders falling for the first time in four months and at their sharpest pace since October 2020.The outbreak has intensified overseas, frustrating external demand.Weak external demand, among other factors, led to a contraction in January for the first time since August, the report said.Average input costs for the service sector rose significantly in January, accelerating slightly from December, the report said.Companies said higher costs for materials and labor pushed up costs.In response, companies continued to raise prices, with markups accelerating to their highest in three months.The report notes that at the start of the New Year, the industry remains strongly optimistic about the outlook for business activity over the next 12 months.But overall optimism fell to a 16-month low amid uncertainty about the epidemic.Caixin also reported that the composite PMI fell to 50.1 in January, just above the line separating expansion from contraction.The preceding value is 53.Output in the services sector expanded slightly, but was offset by a renewed contraction in manufacturing.Wang Zhe, a senior economist at Caixin Intelligence Institute, said that from December 2021 to January 2022, local epidemics occurred in Xi ‘an, Beijing and other cities, and the strengthening of relevant epidemic prevention measures restricted production, transportation and sales, which further highlighted the downward pressure on the economy in the background of “shrinking demand, supply shock and weakening expectations.”In his view, the policy orientation for 2022 still needs to focus on stability, improve the structure, give priority to employment, strengthen support for small and micro businesses, reduce financing costs for enterprises, respond to market concerns in a timely manner, and make policy more predictable.The caixin Services PMI in January was in line with the official data.The non-manufacturing business activity index in January was 51.1, down slightly from the previous month, continuing the expansion trend but at a slower pace, according to data released by China’s National Bureau of Statistics.Source: Reference Information Network