May services activity contracts for third straight month

Pandemic impact: Employees work on a truck assembly line at a factory in Qingzhou. China’s economic activity cooled sharply in April as the country grappled with the worst Covid-19 outbreak since 2020. — AFP

BEIJING: China’s services activity contracted for a third straight month in May, pointing to a slow recovery ahead despite the easing of some Covid lockdowns in Shanghai and neighbouring cities, a private business survey shows.

The Caixin services purchasing managers’ index (PMI) rose to 41.4 in May from 36.2 in April, edging up slightly as authorities began to roll back some of the strict restrictions that have paralysed the financial city of Shanghai and roiled global supply chains.