China December Caixin Services PMI 52.2 (vs. 51.5 in November) | Forexlive

Activity in China’s services sector expanded at a faster pace in December, buoyed by accelerated growth in demand,

Services PMI 52.2 in December 2024

• • Activity Growth: Driven by stronger domestic demand and promotional efforts, new business inflows grew at the quickest pace in five months.
  • Challenges: Export business declined for the first time since August 2023, and employment fell amid cost concerns and resignations.
  • Backlogs and Costs: Outstanding work increased, and cost pressures intensified due to rising input and wage costs. Selling prices rose for the first time in six months.
  • Outlook: Despite positive sentiment supported by government policies, business confidence dipped to near its lowest level since March 2020, with concerns over competition and weak international trade.

The sector shows steady growth but faces challenges from global trade and rising costs.

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Making the data a bit of a mixed bag the Composite declined.

Composite 51.4

• • Growth Trends: Services activity accelerated, but weaker manufacturing output slowed overall growth to its lowest level since September.
  • New Orders: Growth slowed due to a renewed decline in exports.
  • Employment: Declined across both sectors for the first time since June, reflecting reduced optimism in the private sector.
  • Prices: Selling prices fell for the first time in three months, supported by lower goods prices and easing cost inflation.

While the economy continues to grow, momentum has slowed, weighed down by weaker manufacturing, declining exports, and cautious business sentiment.