Service division activity grows in China

Service branch activity in China grew in January, driven by the easing of COVID-19 restrictions, with the impact of increased spending and travel.

The services division purchasing managers index (PMI), prepared by Caixin/S&P Global, rose to 52.9 points in January from 48.0 points in December, following a 4-month contraction, pointing to growth.

The reopening of the Chinese economy also increased service exports. The new export orders sub-index entered the growth zone in January after the contraction in December.

Caixin Insight Group senior economist Wang Zhe said: “In the wake of the latest wave of Covid events, the primary focus of economic work should be to accelerate economic recovery and support normalization in the production and social system.”