Chinese services industry posts first growth since January, job losses persist according to study
For the first time since January, the services industry of China recorded its growth in May, signaling the start of economic recuperation from stagnation due to lockdown measures implemented amidst the outbreak of the coronavirus. However, job loss figures continued to grow according to a private study.
The Caixin/Markit services Purchasing Managers’ Index hiked to 55.0 for the month of May, a sharp increase coming from 44.4 in the previous month. This level bested a 2010 record for the highest PMI.
The country’s services sector is a major source of jobs as it accounts for almost 60% of the economy. Its return to growth was attributed to the large demand for domestic new business as export figures hit its fourth consecutive monthly low.
Employment figures were seen at a slower pace of contraction. The government aims to prioritize avoiding mass unemployment by creating 9 million urban jobs this year.