China's services sector grows at slowest pace in nine months

Ross J Burland FXStreet

Reuters has reported that ''China's services sector activity grew at its slowest pace in nine months in January, a private sector survey showed on Wednesday, as a flare-up in coronavirus outbreaks weighed on businesses in the world's second-largest economy.''

AUD/USD has not moved on the data which arrived as follows:

''The Caixin/Markit services Purchasing Managers' Index (PMI) dropped sharply to 52.0, the lowest since April, from 56.3 in December, while remaining above the 50-mark that separates growth from contraction on a monthly basis.''

''A sub-index for employment stood at 50.7, its lowest since July last year, and down from 52.0 the previous month, the survey showed. Growth in new export business, which only returned to expansion in November, slowed from the month before.
The loss of momentum was largely in line with the findings in an official survey released on Sunday.''

Description of Caixin/Markit services Purchasing Managers' Index (PMI)

The Caixin Services PMI™, released by Markit Economics, is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private service sector companies. The panel has been carefully selected to accurately replicate the true structure of the services economy.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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