China’s Services Sector Grows at Slowest Rate in 5 Months, Another Sign of a Weakening Economy

People wear protective masks as they walk by an ad for French luxury fashion brand DIOR outside a new location set to open at a shopping area in Beijing, China, on Nov. 24, 2021. Kevin Frayer/Getty Images

The expansion of China’s services sector fell to a five-month low in January, and sentiment toward the year ahead sank to the lowest level in 16 months, a private survey stated on Feb. 7, as the pandemic and strict “zero-COVID” measures hit new business and employment.

The Caixin/Markit services Purchasing Managers’ Index (PMI) dropped to 51.4 in January from 53.1 in December, slightly above the 50-mark that separates expansion from contraction, with the lowest level since August last year.