Growth in China’s June services moderates

Consumption boost: An employee makes noodles at a restaurant in Shanghai. Though slower to recover from the pandemic than manufacturing, a gradual improvement in consumption in recent months had boosted the services sector. — Bloomberg

BEIJING: Growth in China’s June services sector slowed sharply to a 14-month low, after a resurgence of Covid-19 in southern China, a private survey showed, adding to concerns the world’s second-largest economy may be losing some momentum.

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.