China's Service Sector Hit Hard by Epidemic
February 28 2020 - 9:50PM
Dow Jones News
BEIJING -- An official gauge of business activity outside
Chinese factory floors slipped to a record low in February as the
country's crucial service and construction sectors were hit hard by
the new coronavirus epidemic.
China's official nonmanufacturing purchasing managers index
plummeted to 29.6 in February from 54.1 in January, the National
Bureau of Statistics said Saturday. February's reading shows deep
contraction, coming in far below the 50 level, which indicates an
expansion.
Among the sectors that bore the brunt of the impact are
transportation, catering and tourism, as people avoided gatherings,
Zhao Qinghe, an analyst with the statistics bureau, said in a
statement accompanying the data release.
The subindex measuring business activity in the service sector
dropped to 30.1 from 53.1 in January, while the subindex measuring
construction activity declined to 26.6 in February from 59.7. The
new-orders subindex for the entire nonmanufacturing sector, a
measure of demand, plunged to 26.5 in February from 50.6 in
January.
The nonmanufacturing PMI covers services such as retail,
aviation and software as well as the real-estate and construction
sectors. The data are based on the replies to monthly
questionnaires sent to purchasing executives at 4,000 companies in
37 nonmanufacturing sectors.
The official manufacturing PMI, also released Saturday, tumbled
to 35.7 in February from 50.0 in January.The gauge of factory
activity is also a record low.
--Liyan Qi
(END) Dow Jones Newswires
February 28, 2020 21:35 ET (02:35 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.