Service sector activity grows in China

China’s services sector activity grew in January, driven by increased spending and travel caused by the easing of COVID-19 restrictions. The services sector purchasing managers’ index (PMI) compiled by Caixin/S&P Global, after a four-month contraction, rose to 52.9 points in January from 48.0 in December, indicating growth. The reopening of the Chinese economy also boosted services exports. The new export orders sub-index moved into growth territory in January after contracting in December. “After the blow from the latest wave of COVID cases, the primary focus of economic work should be to accelerate economic recovery and support normalization of production and social order,” said Wang Zhe, senior economist at Caixin Insight Group.