BEIJING: China services activity expanded at the fastest pace since May, a private survey showed, signaling improving domestic demand after Beijing’s stimulus blitz.
The Caixin China services purchasing managers’ index rose to 52.2 in December from 51.5 the previous month, according to a statement by Caixin and S&P Global yesterday. The median forecast of economists surveyed by Bloomberg was 51.4.
A reading above 50 points to expansion.
The reading matched an official survey published last week showing the services sector, along with construction and manufacturing, improved after authorities announced a raft of stimulus measures in late September.
The broad uptick in activity would be welcomed by policymakers seeking to bolster domestic demand to offset the effects of a potential trade war with the incoming Trump administration.
But the private survey also showed new export business fell for the first time since August 2023, suggesting cooling foreign demand.
Services businesses were cautious about hiring, with the employment gauge sliding into contraction for the first time in four months, according to Caixin. — Bloomberg
