Source: Sharecast
The closely followed Caixin services purchasing managers' index fell to 50.7 last month, down from 51.9 in March and well below the 51.7 reading expected by a consensus of analysts.
This was the 28 straight month of a reading above 50 – which separates growth from contraction – but the lowest print since September.
According to Caixin, business sentiment levels fell to their lowest since February 2020 – when effects of the first Covid outbreak were felt in China – and the second-lowest reading recorded since data collection began in November 2005.
Meanwhile, the weaker outlook prompted service providers to drop rates despite a pickup in cost inflation during the month.
“In April, supply and demand grew at a slower pace than the previous month. Market improvements were limited amid the China-US trade row," explained Wang Zhe, senior economist at Caixin Insight Group.
“Service providers cut prices charged to customers to boost sales amid tepid demand and fierce market competition, resulting in a third straight monthly drop in prices charged."