China’s December Services Activity Growth Accelerates

Source: IHS Markit.

China’s business activity growth in December rose at its strongest pace since July. CSI 300 Index down -1.02%, CNY USD down -0.18%

• The Caixin China general composite purchasing managers’ index grew to 53.0 points in December from a three-month low of 51.2 posted in November.
• Output has now expanded in each of the last four months, with the recent increase the quickest since July, largely attributable to stronger rates of output growth in both manufacturing and service sectors.
• The Caixin China general services PMI expanded to 53.1 points in December from 52.1 a month earlier, signaling a fourth consecutive month of expansion.
• Total new orders expanded at a quicker pace in December, backed by a massive increase in service sales and a renewed increase in manufacturing orders.
• Wang Zhe, an IHS analyst stated that the economy recovered in December with improvements in demand and supply of manufacturing and services.
• Meanwhile, employment at the composite level was fairly flat, as higher staffing levels at services firms were offset by an additional decline in manufacturing payrolls.