China Caixin PMI services rose to 53.9 in December, up from 53.8 and beat expectation of 53.1. PMI composite also rose from 51.9 to five-month high of 52.2.
Commenting on the China General Services PMI™ data, Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said: “The Caixin China General Services Business Activity Index rose to 53.9 in December after a big jump the previous month.
“Among the gauges included in the survey, the one for new business dipped slightly in December after a rebound the month before, suggesting steady demand across the services sector. The employment measure stayed in positive territory but edged down further, indicating that the employment absorption capacity of the services industry weakened mildly. The gauges for prices charged by service providers and input costs both edged up. The measure for business expectations also rose, reflecting service providers’ strengthening confidence in their prospects.
“The Caixin China Composite Output Index picked up marginally to 52.2 in December, reflecting easing downward pressure on China’s economic growth.
“Although the index for new export business rose, the one for overall new orders dropped, reflecting weakening domestic demand. The employment gauge slipped further into negative territory, implying increasing challenges to stabilizing employment, which was the broader context of December’s central government policies to increase jobs. The gauges for input costs and output charges continued to drop, pointing to easing inflationary pressures. The measure for future output, which reflects business confidence, edged up marginally, although it remained on a downtrend.”
