BEIJING, June 6 Reuters China39;s services activity contracted for a third straight month in May, pointing to a slow recovery ahead despite the easing of some COVID lockdowns in Shanghai and neighbouring cities, a private business survey showed on Monday.
The Caixin services purchasing managers39; index PMI rose to 41.4 in May from 36.2 in April, edging up slightly as authorities began to roll back some of the strict restrictions that have paralysed the financial city of Shanghai and roiled global supply chains.
However, the reading remained well below the 50point mark that separates growth from contraction on a monthly basis.
Analysts say weakness in the services sector, which accounts for about 60 of China39;s economy and half of urban jobs, is likely to persist under the government39;s zeroCOVID policy, with contactintensive sectors such as hotels and restaurants bearing the brunt of the fallout.
An official survey on Tuesday also showed the services sector was still mired in contraction.
The Caixin survey showed new business, including new export orders, fell for the fourth straight month in May as restrictions on mobility kept customers at home and disrupted operations.
That led services firms to reduce their payrolls at a sharper rate, with a subindex for employment standing at 48.5, the lowest since February last year and down from 49.3 the previous month.
Official data showed China39;s nationwide surveybased jobless rate had climbed to 6.1 in April, the…