China’s service sector extended for a straight four months in August despite the PMI slipping from a month earlier, as a result of firms starting to hire more people for the first time since January, said a private survey on Thursday.
Caixin China services Purchasing Managers’ Index (PMI) slided to 54.0 from 54.1 in July, dropping for the second month after June’s PMI hit decade record but still stands above the 50-mark level.
As Covid-19 restrictions lifted, companies back to hire more in August after six months of layoffs, showing a solid pace in service sector recovery and slower return to growth. The service sector accounts for about 60% of GDP and was one of the worst-hit by the pandemic due to a decline in consumer demand during the lockdowns.
Many analysts expect China to be the only major economy to mark positive annual growth in 2020.