BEIJING—Activity in China’s services sector contracted at the sharpest pace in two years in March as a surge in coronavirus cases restricted mobility and weighed on demand, a private sector survey showed on Wednesday.
The Caixin services Purchasing Managers’ Index (PMI) dived to 42.0 in March from 50.2 in February, dropping below the 50-point mark that separates growth from contraction on a monthly basis. The reading indicates the sharpest activity decline since the initial onset of the COVID-19 pandemic in February 2020.
