In case you missed it, the China services PMI from Caixin released early today plunged to 42.0 from 50.2. That's a two-year low and comes with Shanghai's covid outbreak showing now signs of slowing down.
A survey of 163 US companies on April 1 by the American Chamber of Commerce showed that 99% of them had already been affected by the latest outbreak in Shanghai.
Cases there have hit records for five straight days, including 17,007 in the latest report. The city of 25 million remains locked down indefinitely and officials aren't offering any hints at loosening the 'dynamic covid zero' policy despite rising dissatisfaction.
That could change as the economic costs mount and the futility of trying to control omicron but until that happens, expect to see continued deterioration in China. Moreover, the curbs in Shanghai and elsewhere in China will add another wrinkle to a desperately-stretched supply chain.