© Reuters.
biedexmarkets.com– China’s services sector grew less than expected in February, a private survey showed on Tuesday, as the Lunar New Year holiday provided only a limited boost to activity amid a broader downturn in the economy.
The (PMI) rose to 52.5 in February, less than expectations for a reading of 52.9 and also slowing from the 52.7 seen in January.
Local demand remained weak, largely offsetting an increase in overseas orders, the Caixin report showed. Higher input prices were also passed on to customers, which further weighed on demand.
Tuesday’s data marked a second consecutive month of below-consensus growth for the Caixin reading, which could potentially indicate some slowing in service activity as the broader Chinese economy cools.
Official data released last week also showed little improvement in the , while activity remained close to contraction.
Still, the services sector remains among the few bright spots in the Chinese economy. Tuesday’s Caixin data showed the sector expanding for a 14th straight month, managing to defy a broader downturn in the economy.
The Chinese government rolled out a slew of monetary stimulus measures over the past year to boost growth, which was still reeling from the COVID-19 pandemic. But the move provided limited support to the economy.
