(Bloomberg) -- China’s services activity expanded at a stronger pace in July as easing Covid restrictions led more businesses to return to normal.

The Caixin China Services purchasing managers’ index rose to 55.5 in July from June’s 54.5, the highest since April 2021, Caixin and S&P Global said in a statement Wednesday. That was well above the median estimate of 53.9 in a Bloomberg survey of economists. 

The latest improvement in activity was driven by a further recovery in operating conditions and client demand following the easing of Covid containment measures, according to the statement. 

“Although Covid restrictions hurt the businesses of some service companies, the economic fallout from this round of outbreaks was fading,” said Wang Zhe, senior economist at Caixin Insight Group. He added that “business owners held a more positive outlook,” as the gauge for future activity expectations hit its highest point in eight months.

The findings from the private survey are more optimistic than the official non-manufacturing purchasing managers’ index released over the weekend, which showed an expansion from the previous month, though at a weaker pace. The official survey tracks larger companies and includes the construction sector, while the Caixin survey focuses more on smaller ones.

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