The Chinese service sector fell sharply in August, after earlier this week it was found that industry was also no longer growing. This was shown on Friday by figures from Markit.
The index measuring the activity of the country’s services sector reached 46.7 in August, compared with 54.9 in July. That is the lowest level since April 2020.
Earlier this week, the Purchasing Managers Index for the Chinese industry decreased from 59.3 to 49.2 in August.
The composite index fell from 53.1 in July to 47.2 in August, the first decline since April 2020.
Economist Wang Zhe of Caixin explained the decline due to the upturn in the number of coronavirus infections in China at the end of July, which forced the authorities in Beijing to take firm action and once again to impose severe measures.
An index position greater than 50 indicates growth, while less than 50 means contraction.