Caixin China Purchasing Managers Index landed at 42.0 in March, signaling a contraction in the country's services activity, according to a report released by the IHS Markit on Wednesday.
The sector saw the steepest reduction since the initial onset of the pandemic in February 2020, with the headline figure dropping compared to last month's reading of 50.2.
"Businesses grew less optimistic. Entrepreneurs were still confident that the epidemic would be brought under control eventually, but this optimism faded," Senior Economist at Caixin Insight Group Dr. Wang Zhe said.
