Growth in China's services sector slowed for a second straight month in Jan...
BEIJING - Growth in China’s services sector slowed for a second straight month in January, a traditionally busy sales season, hitting a three-month low as companies cut prices and new orders dipped, a private sector survey showed on Wednesday.
The slowdown in growth suggests the services sector, which accounts for more than half of the economy, faces persistent challenges despite a flurry of stimulus and a U.S.-China trade “Phase 1” deal. The reading is also unlikely to reflect the early impact of the coronavirus crisis that flared in late January, which could weigh heavily on growth.
Services companies reported a smaller rise in the volume of new work in January and continued to face higher fuel and labor costs. Demand softened at home, while new orders from overseas picked up modestly from the previous month. However, a coronavirus outbreak that has abruptly limited the movement of millions of people and forced the closures of restaurants, malls, and movie theaters across the country during the week-long Lunar New Year holiday, is likely to further darken the outlook for China’s slowing economy.
“But we also expect that there will be significant disruption to other economic activities, though to a lesser degree than the impact on consumption.”
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