Services activity in China's drastically fell in October

Restrictions imposed in China due to the COVID-19 pandemic have hurt businesses so badly that it caused service sector activity to drop in October. 

The PMI, according to Caixin, declined from 49.3 to 48.4. This is the lowest figure since May. The reasons for the fall are associated with the fact that COVID-19 and the restrictions imposed due to it have undermined consumer confidence.

China saw good economic growth in the third quarter compared to previous quarters, so growth was expected to continue. However, along with restrictive measures, the real estate crisis and a likely global recession are keeping China's economy from growing steadily. 

According to the Chinese Ministry of Commerce, the service sector took the main hit, particularly accommodation and catering sectors.

According to a public survey, employment in the service sector managed to increase last year. Up until this year, when people in large numbers began to lose their jobs, the employment sub-index was the highest since May 2021.

The COVID-19 outbreak in China continues unabated and keeps undermining the economy. For example, NIO, which produces electric cars, announced the suspension of its Hefei plant; the Disney Resort in Shanghai is temporarily closed.