China’s services activity expands at slower pace in January amid soft start to 2024
- Caixin/S&P Global services purchasing managers’ index (PMI) edged down to 52.7 in January from 52.9 in December
- Figure comes after official data last week showed factory activity contracted again, offering a snapshot of the state of the economy at the start of the year
China’s services activity expanded at a slightly slower pace in January as new orders fell, a private-sector survey showed on Monday, suggesting a soft start for the world’s second-largest economy amid tepid demand and a property slump.
China’s economy is struggling to regain momentum, facing multiple challenges including persistent deflationary pressures, a prolonged housing downturn and mounting local government debt.
The government is drawing on a well-used playbook of using government debt to fund infrastructure to help lift the economy as consumers are wary of spending amid uncertainty on income.
In January, new orders expanded at a slower pace with the index falling to 51.5 from 53.7 in December. Companies, hence, marginally increased headcount for the second consecutive month, said the survey.