MarketDeal24.Com – A privately conducted survey released on Friday has revealed that the services sector of China is struggling to get back on its feet after passing a brutal month characterized by an unprecedented level of closure of both economic activities and its citizens.
Service reliant businesses slashed the level of the workforce at a record pace as orders dipped dramatically for the second consecutive month which forced the hands of those business ventures to cut operating costs. Export orders also plummeted again as more nations imposed their own tough virus containment guidelines.
Though the benchmark Purchasing Managers’ Index (PMI) by Caixin/Markit services registered some crucial gains to 43 points in March from a record low of 26.5 points in February, it still remained deep in contraction and was the second-worst reading since the start of the survey in late 2005. The 50-point mark serves as a factor that separates growth from contraction.
The grim findings however, seem to have added fuel to the fire as fears that consumer-facing service businesses could be hit much harder and longer by the downturn than industries, which are gaining ground slowly. Similar economic surveys will come out for Europe and the United States later on Friday.