August Services Sector Index Declined in Communist China Indicating Overall Economy Slipped Into Contraction
Translator: MOS – Xunchi
On September 3, Reuters reported that the Caixin/Markit Services Purchasing Managers’ Index (PMI) fell to 46.7 in August from 54.9 in July, falling to its lowest level since the first wave of the pandemic in April 2020. And the composite PMI (which includes manufacturing and services activity) also fell to 47.2 in August from 53.1 in July. Compared to the 50-point mark that separates growth from contraction, the significant decline of PMI indicates a sharp contraction in the services sector, as well as the overall economy. The grim readings from the survey, which focuses more on small businesses in coastal areas, are in line with the findings of an official survey earlier this week.
The services sector in Communist China was slower to recover from the pandemic than manufacturing. In the wave of Delta variant of the CCP virus, The Chinese Communist Party (CCP) has once again neglected the people and imposed extreme measures across the country including mass testing of millions of people and travel restrictions of varying degrees in August, which exacerbating the blow to the catering, transportation, accommodation and entertainment industries. The brief growth that occurred in the services sector was instantly plunged back into contraction.
Due to the CCP-released virus, the rising costs of domestic labor and transportation put service costs under constant pressure.
(This article only represents the author’s opinion.)
Proofread and Posted by: Irene
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