China's financial information provider Caixin announced that the Caixin services Purchasing Managers' Index (PMI) has hit its lowest point in 7 months.
On the 6th, according to foreign media outlets including Caixin, Bloomberg, and Reuters, the April services PMI recorded 50.7, down 1.2 points from the previous month. This is the lowest figure since September, significantly below Bloomberg's forecast of 51.8.
This index, compiled by Caixin based on surveys of purchasing managers in corporations, uses 50 as a benchmark; a figure above 50 indicates economic expansion, while a figure below 50 indicates economic contraction.
Earlier, China's National Bureau of Statistics reported that the April services business activity index also fell 0.2 points from the previous month to 50.1.
This metric indicates that while the Chinese economy showed stronger performance than expected in the first quarter of this year, bolstered by economic stimulus measures, it continues to struggle with persistent deflation risks and a prolonged downturn in the real estate sector.
Analysts suggest that the aftershocks of tariffs from the United States have had a significant impact.
Wang Zhe, a researcher at Caixin, noted, "Both corporations' and consumers' confidence has decreased, making it more difficult to stimulate domestic demand," and added, "The effects of the U.S.-China tariff war will become more apparent in the second and third quarters."