Via Caixin:
February PMI data signalled the first reduction in business activity across China’s service sector on record due to restrictions implemented to contain the recent coronavirus outbreak. Firms across all sectors reported on the damaging effect that the virus was having on the economy via company closures and travel restrictions, with total new orders also falling at a record pace. Restrictions around travel also impacted firms’ ability to source workers, leading a renewed fall in staff numbers. Consequently, backlogs of work rose at a substantial pace.
At the same time, business confidence slipped to a survey low in February. A number of panel members were more cautious with their forecasts due to a greater degree of market uncertainty arising from the coronavirus outbreak.
