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China's economic recovery
EconomyEconomic Indicators

China’s services sector activity expands at fastest pace in 6 months in February as demand recovers

  • Caixin/S&P Global services purchasing managers’ index (PMI) rose to 55 in February from 52.9 in January
  • On Wednesday, the official non-manufacturing PMI, which measures business sentiment in the services and construction sectors, also rose to 56.3 in February

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China’s Caixin/S&P Global services purchasing managers’ index (PMI) rose to 55 in February from 52.9 in January. Photo: AP
Reuters

Activity in China’s services sector expanded at the fastest pace in six months in February as the removal of tough coronavirus restrictions revived customer demand, driving a solid increase in employment, a private sector survey showed on Friday.

The Caixin/S&P Global services purchasing managers’ index (PMI) rose to 55 in February from 52.9 in January, a back-to-back monthly increase in activity after the government abruptly dismantled antivirus measures in December.

The 50-point mark separates expansion and contraction in activity on a monthly basis.

The reading tallies with an official services PMI released on Wednesday, suggesting a robust recovery in the sector is well under way.

Service companies reported the strongest rise in new business since April 2021, while new export order growth accelerated to the highest in almost four years, the Caixin survey showed.

The improvement in market conditions also drove a strong increase in employment. Firms started to take on additional workers for the first time in four months and the rate of job creation was the sharpest since November 2020 as spending and travel got a boost.

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