BEIJING (dpa-AFX) - The services sector in China continued to expand in January, albeit at a slower pace, the latest survey from Caixin showed on Monday with a PMI score of 51.4.
That's down from 53.1 in December, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction.
The rate of growth was the slowest seen in the current five-month sequence of expansion. Companies often mentioned that activity rose due to higher amounts of new business. However, others commented that the pandemic, and efforts to contain the virus, had weighed on overall growth.
Total new orders rose marginally at the start of 2022, with the upturn the second-slowest seen since sales returned to growth last September. The softer rise in new work was in part due to weaker external demand. New export orders fell for the first time in four months and at the quickest pace since October 2020. A number of companies mentioned that increased COVID-19 cases overseas had weighed on foreign demand.
The survey also showed that the composite index slipped to 50.1 in January from 53.0 in December.
Composite new work meanwhile fell slightly for the first time since last August, driven by a modest fall in new business at goods producers and slower growth of service sector order books. Total new export sales fell at the quickest rate for 20 months, with lower foreign demand seen across both monitored sectors.
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