China's service sector grows at fastest pace in nearly six years, survey suggests
Sector accounts for half of the world’s second-largest economy and analysts believe better access to loans and strong demand fuelled robust start to 2018
China’s services sector got off to a flying start in 2018, expanding at its fastest pace in almost six years as new orders surged and companies rushed to hire more staff, a private survey showed on Monday.
Economists also attributed the robust strength in services in January to better access to bank loans at the start of the year and solid demand before the long Lunar New Year celebrations, which fall in mid-February.
The Caixin/Markit services purchasing managers’ index rose to 54.7 in January from December’s 53.9, marking the highest reading since May 2012. The 50-mark separates growth from contraction on a monthly basis.
The upbeat findings, which echoed those of an official gauge of the non-manufacturing sector last week, bode well for Beijing’s longer-term goal of overhauling and modernising its economic growth model.
The government is counting on growth in consumption and services, particularly in high value-added areas such as finance and technology, to reduce the economy’s traditional reliance on heavy industry, investment and exports.