China's Services Sector Faces Growth Slowdown

In April, China's services sector experienced a deceleration in growth, as indicated by the Caixin China Purchasing Managers Index (PMI) falling to 50.7 from 51.9 in March. This data, released by S&P Global on Tuesday, still marks a growth phase for the sector, albeit at a pace that fell short of investor expectations.

Trade Tensions Impact Market Improvements

Dr. Wang Zhe, a Senior Economist at Caixin Insight Group, highlighted the limited market improvements due to the ongoing China-US trade disputes. He noted that the services sector witnessed the slowest increase in new orders since December 2022, underscoring the challenges faced by the sector in the current economic climate.