The Purchasing Managers' Index (PMI) in China's services sector collapsed in March to the lowest since February 2020 amid the introduction of new restrictions due to another outbreak of Covid-19. Analysts note that tough measures to combat the virus led to disruptions in work and negatively affected customer demand in March. The indicator fell to 42 points in March compared to 50.2 points in February. It is noted that the index value below 50 points indicates a drop in business activity in the service sector. In addition, the sub-index of new orders last month showed a record decline since March 2020 due to falling demand abroad. The employment indicator continued to decline, as well as throughout the first quarter. At the same time, enterprises noted an increase in costs, including the rise in prices for commodities, electricity, food, transportation and the cost of measures to combat coronavirus. The composite index of business activity in China in March fell to the lowest since the beginning of the pandemic and amounted to 43.9 points. In February, the indicator value was fixed at the level of 50.1 points.
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