The services sector in China continued to expand in February, albeit at a slower rate, the latest survey from Caixin showed on Thursday with a services PMI score of 50.2.
That’s down from 51.4 in January, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
According to panel members, the ongoing pandemic and measures to stem the spread of the virus had dampened business activity. Measures to contain COVID-19 cases, including travel restrictions, also impacted client demand, which fell for the first time in six months. Though mild, it marked the quickest decline in total new work since April 2020. This was partly due to a further reduction in new export business, which was reportedly also dampened by the pandemic.
The survey also showed that the composite index was steady at 50.1 in February.
After a slight fall in January, composite new business was stable in February, with a modest increase in sales at manufacturers offsetting a renewed fall at services companies. Both sectors recorded lower intakes of new export business, however, though the pace at which total foreign demand decreased eased since January.
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