PMI Index Declines in China

Due to re-imposed Covid-19 limits, China's service sector purchasing managers index (PMI) declined.

PMI Index Declines in China. With the detection of coronavirus cases and the decision to re-quarantine, PMI data recorded the sharpest contraction ever in China's service sector. The Caixin/Markit services sector purchasing managers index (PMI) dropped to 36.2 in April. Experts stated that the sharp decreases in the number of new businesses and employment as a result of the quarantine causing interruptions in activities were effective in this contraction. In addition, it was emphasized that the figures for April were the second lowest level since November 2005, when the index started to be recorded. At the beginning of the pandemic, that is, in February 2020, the index decreased to 26.5, which was recorded as the lowest level. On the other hand, the 50-point level in the monthly Caixin service sector index distinguishes growth from contraction.