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A sub-index of new business stood at 50.5 in June, also the lowest since April 2022 by techschool

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A sub-index of new business stood at 50.5 in June, also the lowest since April 2022
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The Caixin/Markit services Purchasing Managers' Index (PMI) fell to 50.3 in June, the lowest since April 2020 and down significantly from 55.1 in May. It held just above the 50-mark, which separates growth from contraction on a monthly basis.

China's official services gauge had also shown a marked slowdown in June, though it remained well in expansion territory. The private survey typically focuses more on smaller companies.

Coupled with a slowdown in manufacturing, analysts say the PMI survey findings suggest that pent-up COVID demand may have peaked and China's robust economic rebound from the crisis is starting to moderate.

Though slower to recover from the pandemic than manufacturing, a gradual improvement in consumption in recent months had boosted the services sector.

But a COVID-19 outbreak of the more infectious Delta strain in the export and manufacturing hub of Guangdong in May-June and the subsequent imposition of anti-virus measures weighed on consumer and business activity.

A sub-index of new business stood at 50.5 in June, also the lowest since April 2020 when the sector was still paralysed by COVID-19 and lockdowns. Firms also cut staff in June for the first time in four months, as a result of slowing demand.

Karaoke outlets, restaurant owners and cinema operators in Guangdong province told Reuters that their business was adversely impacted by social distancing rules during the latest outbreak.
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