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China’s services sector growth slows in December amid near-record low business confidence

  • Caixin/Markit services purchasing managers’ index (PMI) slowed to 52.5 last month from 53.5 in November
  • More downbeat reading suggests services companies remain cautious about the outlook for China’s economy, despite signs of improvement

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The Caixin/Markit services purchasing managers’ index (PMI) slowed to 52.5 last month from 53.5 in November. Photo: EPA-EFE

China’s services sector expanded at a slower pace in December following a strong rebound in the previous month, with business confidence falling to the second lowest on record despite a pickup in new orders, a private survey showed on Monday.

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The more downbeat reading suggests services companies remain cautious about the outlook for China’s economy despite a flurry of stimulus measures, signs of improvement in the manufacturing sector and a long-awaited US-China trade deal.

The services sector accounts for more than half of the economy.

The Caixin/Markit services purchasing managers’ index (PMI) slowed to 52.5 last month from 53.5 in November, but was still higher than an 8-month low hit in October.

The index has stayed above the 50-point margin that separates growth from contraction on a monthly basis since late 2005.

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The cooling trend in the private survey echoed that in the official non-manufacturing PMI, published by the National Bureau of Statistics, which fell from November’s eight-month high.

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