China’s services sector slowed significantly in April to its lowest point since August 2011, a private sector survey revealed on Monday. This adds to the rising risks to a revival for the world’s No. 2 economy.
The HSBC services Purchasing Managers’ Index (PMI) fell to 51.1 in April from 54.3 in March, with new order expansion the slowest in 20 months and staffing levels in the service sector decreasing for the first time since January 2009.
Two separate PMIs last week showed that China’s manufacturing sector growth slowed, with weakness spreading to services. This make up almost half of gross domestic product with the risk to the recovery may be increasing.
China’s economic growth took an unexpected fall in the first quarter, slipping to 7.7 percent versus 7.9 percent in the previous three-month period, as factory output and investment slowed down.
For more on China’s financial status, check out this news from Yahoo! Finance.