Investing.com — China's services sector expanded in December at the fastest pace in seven months, supported by rising domestic demand, despite a decline in export business, private PMI data showed on Wednesday.
The index came in at 52.2 in December, compared to expectations for a reading of 51.4. The reading was higher than the 51.5 seen in November.
A reading above 50 indicates expansion, with services activity now expanding at its fastest pace since May 2024.
“According to service providers, promotional efforts and better underlying demand supported the recent increase in new sales. Sales growth was notably supported by higher domestic demand with new export business declining for the first time since August 2023 amid waning foreign interest,” the Caixin report said. male.
Recent PMI data showed a slower-than-expected expansion in December, implying that the impact of stimulus measures has diminished.
China has committed to implementing more proactive fiscal stimulus measures and adopting somewhat looser monetary policies in 2025.
US President-elect Donald Trump has threatened to impose hefty import tariffs against the country when he takes office on January 20 – a scenario that could herald further economic pressure.
Beijing is expected to roll out more targeted fiscal stimulus in response to Trump's tariffs this year. Recent reports indicated that the country will cut interest rates to increase fiscal spending, in order to support economic growth.
“Sentiment in China’s services sector remained positive at the end of 2024 as companies were generally hopeful that business development efforts and supportive government policies would support sales growth in 2025,” the report said.
