Services Activity in China Weakens to Three-Month Low in January

The Chinese services sector experienced a weaker growth for the second consecutive month during January, on account of lower prices and a

Arslan Butt•Wednesday, February 5, 2020•1 min read

Services Activity in China Weakens to Three-Month Low in January

The Chinese services sector experienced a weaker growth for the second consecutive month during January, on account of lower prices and a dip in new orders received. The Caixin China General Services PMI slid to 51.8 in January from 52.5 in December, the lowest level seen in three months.

The services sector contributes to more than half of China’s GDP and has been experiencing weakness on the back of a weaker rise in new orders and a stagnation in employment. Services companies in China also grappled with higher input costs, especially for fuel and labor, even as they cut average selling prices to offset the slump.

On the positive side, services companies in China were more optimistic about business activity increasing over the next 12 months following the signing of the US-China phase one trade deal. However, the outlook and the figures do not yet take into account the effect of the recent coronavirus outbreak in China, which has resulted in a lockdown across several provinces and regions.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.