China May services activity contracts for third straight month: Survey

Analysts say weakness in the services sector, which accounts for about 60% of China's economy and half of urban jobs, is likely to persist under the government's zero-Covid policy

China's services activity contracted for a third straight month in May, pointing to a slow recovery ahead despite the easing of some COVID lockdowns in Shanghai and neighbouring cities, a private business survey showed on Monday.
 

The Caixin services purchasing managers' index (PMI) rose to 41.4 in May from 36.2 in April, edging up slightly as authorities began to roll back some of the strict restrictions that have paralysed the financial city of Shanghai and roiled global supply chains.
 

However, the reading remained well below the 50-point mark that separates growth from contraction on a monthly basis.
 

Analysts say weakness