Investing.com– China’s services sector expanded at its fastest pace in seven months in December, supported by stronger domestic demand, although export jobs fell, private purchasing managers’ index data showed on Wednesday.
It came in at 52.2 in December, compared with expectations for a print of 51.4. The reading was higher than the 51.5 recorded in November.
A reading above 50 indicates expansion, with services activity now expanding at the fastest pace since May 2024.
“According to service providers, promotional efforts and better underlying demand supported the latest increase in new sales. Sales growth was significantly supported by stronger domestic demand as new export business declined for the first time since August 2023 due to weakening foreign interest,” the Caixin report said.
Recent PMI data showed that it grew more slowly than expected in December, implying that the effect of stimulus measures is waning.
China has pledged to implement more proactive fiscal stimulus measures and adopt a moderately looser monetary policy in 2025.
US President-elect Donald Trump has threatened to impose tough import tariffs against the country when he takes office on January 20 – a scenario that could herald more economic pressure.
Beijing is expected to introduce more targeted fiscal stimulus this year in response to Trump’s tariffs. Recent reports suggest that the country will cut interest rates to increase fiscal spending to support economic growth.
“Sentiment in China’s service sector remained positive at the end of 2024 as companies generally hoped that business development efforts and supportive government policies could support sales growth in 2025,” the report said.
