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在线翻译:
szdaily -> Business/Markets -> 
Services activity dips: Caixin PMI
    2020-03-05  08:53    Shenzhen Daily

THE country’s services sector had its worst month on record in February as new orders plummeted to their lowest level since the global financial crisis, a business survey showed yesterday, with economists urging swift support.

The Caixin/Markit services purchasing managers’ index (PMI) almost halved last month to just 26.5 from 51.8 in January. It was the first drop below the 50-point margin that separates growth from contraction on a monthly basis for the first time since the survey began almost 15 years ago in late 2005.

“Stagnating consumption amid the coronavirus epidemic has had a great impact on the service sector,” Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group, wrote in a note accompanying the Caixin PMI release.

The slump in the private sector survey, which focuses more on small, export-oriented companies, echoed an official survey last week, which also showed the activity falling at a record pace.

“Although policies have been introduced to provide tax and financing support for industries and small businesses heavily impacted by the epidemic, service companies were still concerned about uncertainties resulting from the epidemic,” CEBM Group’s Zhong said.

China’s February services PMI showed the steepest decline in new work since November 2008 while outstanding orders surged to a record high as many were unable to deliver services and temporarily closed shop due to the outbreak.

Demand shrank the most at home, but new orders from overseas also fell sharply from the previous month. Export demand fell the most since the sub-index started in September 2014.

To increase sales, firms have lowered prices for the third time with discounting at its most aggressive in almost eight years.

A China Merchants Bank survey of over 20,000 companies mostly in the services sector conducted in February showed nearly 20 percent of the companies face “severe difficulties” due to the coronavirus, while nearly 6 percent are on the brink of collapse.

“While the epidemic has had a more obvious effect on the manufacturing sector, it would be more difficult for service companies to make up their cash flow losses,” CEBM’s Zhong said.(SD-Agencies)

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