The service sector in China, including the catering industry and tourism, shrank more than expected in May due to the corona vicissitudes in the country.

The strict measures to contain the spread of the virus, in combination with the caution among consumers, means that less was spent. That could be deduced from figures from researchers at Caixin.

The cutbacks are expected to be felt this month as well. The Caixin survey, which covers small and medium-sized enterprises, is said to better reflect the economic situation in China compared to official government figures.

Caixin’s service sector indicator stood at 41.4 in May. However, there was some recovery because of the level of 36.2 a month earlier. But connoisseurs counted on a reading of 46 on average. A reading below 50 means contraction. Beyond that, it’s about growth.

Chinese cities began easing coronavirus restrictions in May as the number of infections eased. More is possible in Shanghai and Beijing, among others. Experts take into account that the road to recovery will be full of bumps, and new strict measures cannot be ruled out.