If economists need more proof that China is in the midst of a multiyear economic slowing, they can look to the Caixin’s services purchasing manager’s index (PMI) for May. It dropped to the lowest level since February.

The Chinese research firm’s analysts reported on the services PMI:

China’s services sector is still expanding but at a slower rate, according to the Caixin Purchasing Managers’ Index for general services business activity, which finished May at 51.2.

The news from China’s other major sector was little better:

Released alongside the index was Caixin Composite PMI data, which covers the nation’s manufacturing and services sectors. The Composite Output Index fell to 50.5 in May from 50.8 in April. The index is based on the Caixin Purchasing Managers’ Index for manufacturing released June 1 and the latest services sector index.

Zhong Zhengsheng, director of Macroeconomic Analysis at CEBM Group, a subsidiary of Caixin Insight Group, said:

Underlying structural changes are still going on, with the manufacturing sector shrinking and services expanding. The government needs to continue to push forward stabilization measures to help the economy recover.

As the world’s second largest economy by gross domestic product, when China catches the flu, the balance of the world catches a cold. The recoveries of the U.S., Japanese and European Union economies are fragile enough already.

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