Economy and financial news service Caixin’s China General Services Purchasing Managers Index (PMI) has been hovering above 50 points, which indicates an increase in economic activity for four months.
Although the index decreased by 1.4 points to 56.4 in April compared to the previous month, it showed that the effect of the strong recovery in the sector continued.
The index, which was below 50 in the last 4 months of the last year, rose again above the growth threshold with 52.9 in January and continued its upward trend with 55 in February and 57.8 in March.
The index, which was prepared according to the results of the surveys sent by the market data services company IHS Markit to the purchasing managers of more than 400 companies operating in the service sector in China, is seen as a barometer of the economic activity in the sector.
After the removal of the Covid-19 restrictions, which hindered economic activities, it is seen that the signs of recovery in the services sector have become evident with the increase in domestic travel and consumption during the Spring Festival in January and February in China and the Labor Day holidays at the end of April.
RECOVERY IN THE MANUFACTURING SECTOR
In the manufacturing sector, the recovery is still fragile.
The manufacturing industry PMI index, announced by Caixin yesterday, remained below the growth threshold with 49.5. The index entered the growth process in the first quarter of this year, after continuing to shrink in the last 5 months of 2022 due to the impact of Covid-19 measures.
The official PMI index published by the National Bureau of Statistics (UIB) also showed that the manufacturing industry entered a contraction trend with 49.2 in April. Non-manufacturing PMI, on the other hand, continued its growth momentum, though it fell by 1.8 points to 56.4.