BEIJING: China’s policy package aimed at steering the economy back on track is starting to pay off, aiding a gradual rebound in key service sectors, while analysts and industry insiders call for continuous support to counter headwinds and underpin a sustained recovery.
The National Bureau of Statistics said on Sunday that the purchasing managers’ index for China’s nonmanufacturing sector came in at 53.8 in July, marking the second consecutive month that the sector expanded. A reading above 50 indicates expansion, while a reading below it reflects contraction.
The NBS said the PMI reading for the catering, accommodations and transportation sectors in July exceeded 60, the result of a host of pro-growth policies issued since May.
Zhao Qinghe, a senior statistician with the NBS, said in a statement after the release of the data that the nation’s service sector has been on the recovery track over the past two months, and activity in all the surveyed service sectors shows growing confidence among businesspeople.
The central government has come up with various policy measures to support companies in the services sector, especially catering, tourism, culture and transportation, which have been hit hard by the surge of COVID-19 outbreaks in parts of the country since March.
A State Council executive meeting chaired by Premier Li Keqiang on Friday reiterated the need to support struggling industries, including catering, retail, tourism and transportation, as policymakers pledged to extend extra value-added tax deductions in the services sector.
Key measures that have already been rolled out include offering tax refunds and fee cuts to businesses, deferring their social security payments and encouraging State-owned housing authorities to reduce or exempt rent for micro and small businesses.
–The Daily Mail-China
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