Economy Jun 17

China's battered service industry shows growth signs

Technology sector leads mild recovery in May after lockdown decimated services output

China's battered service industry shows growth signs
Looking up: Technology leads gains as service sector perks up. 

(ATF) China’s services industry, facing a long road to normality after the coronavirus crisis, is showing signs of a gradual recovery.

The production index of the sector climbed 1% in May, marking the first year-on-year increase this year and rebounding from a decline of 4.5% in April, according to data provided by the National Bureau of Statistics (NBS) Tuesday.

The sub-reading for information transmission, software and information technology services expanded 12.9% last month, while that for the financial and real estate sectors grew 5.2% and 7.1%, respectively, the NBS data showed.

Meanwhile, wholesale and retail sales, hospitality and catering, leasing and business services, also improved in in the period, with their sub-index declines narrowing 4.5 percentage points, 12 percentage points and 4.1 percentage points, respectively.

The service sector production index declined 7.7% in the first five months of 2020, with the slide narrowing 2.2 percentage points compared with the January-April period.

With the continuous resumption of production following a two-month lockdown that shrank China’s first-quarter economy for the first time in generations, the service industry is expected to see further recovery, said NBS spokesperson Fu Linghui.