Growth in China’s services sector sped up in May, a private survey showed on Monday, as the relaxing of anti-COVID measures continued to push up consumer demand and employment in the services industry.
The Caixin services purchasing managers’ index (PMI) rose to 57.1 in May from 56.4 in April, beating expectations for a reading of 55.2. The index grew for a fifth straight month after China relaxed most anti-COVID restrictions at the beginning of 2023.
China’s services sector fared much better than its manufacturing industry, which saw activity contract during the month. Manufacturing is by far the country’s biggest economic driver, with weakness in the sector potentially heralding a slowdown in the economy’s nascent post-pandemic recovery.
