Adidas sales in China return to normal after coronavirus lockdown

Sports giant Adidas said sales have returned to normal in China in yet further signs that life is fully back up and running in the world's second largest economy.

While shoppers to its stores stayed below that of last year in May, the company said a surge in online sales had led to an overall increase in sales for the month. As a result Adidas now expects second-quarter sales for the region to be around the same level as last year.

The update from the German firm is relief for investors around the world who are looking to see how fast the Chinese economy will bounce back this year.

Yesterday surprisingly strong data on the Chinese economy gave rise to hopes for a worldwide recovery from the covid crisis.

The Chinese services sector rebounded in May to show a near-10-year high as domestic demand recovered from the lockdown there.

The Chinese Purchasing Managers Index on the sector, in which anything above 50 represents growth, jumped from 44.4 in April to 55.0.

The index had been under 50 for three months due to the coronavirus epidemic.

A renewed expansion of activity had greeted the end of lockdown across the country - a pattern that could bring optimism that the UK and other major economies will follow suit in the coming months.