empty
 
 

2021.01.0605:34:00UTC+00China's Service Sector Logs Strong Growth In December

China's service sector continued to recover from the pandemic driven downturn in December, survey results from IHS Markit showed Wednesday.

The Caixin services Purchasing Managers' Index fell to 56.3 in December from 57.8 in November. A score above 50 indicates expansion.

Although the pace of growth moderated, it remained among the steepest recorded over the past decade and signaled a marked recovery from the Covid-19 outbreak at the start of the year.

The softer rise in overall activity coincided with a slower expansion of total new work at the end of 2020. The slowdown occurred alongside a weaker upturn in foreign demand.

Meanwhile, data pointed to a second successive monthly rise in workforce numbers at Chinese service providers.

Input prices increased at a softer pace after rising at the sharpest rate since August 2010. Prices charged by service providers increased further in December. Notably, the rate of inflation was the quickest recorded since the start of 2008.

Service sector firms generally expect activity levels to rise over the next year. The degree of optimism was the strongest since April 2011 and above the historical average.

The composite output index, which is a weighted average of the manufacturing output index and the services business activity index, fell to 55.8 in December from a more than ten-year high of 57.5 in November. "Looking ahead, we expect the post-epidemic economic recovery to continue for several months, and macroeconomic indicators will be stronger over the next six months due to the low bases in the first half of 2020," Wang Zhe, senior economist at Caixin Insight Group said.

Entrepreneurs were confident about further improvement to the economy in the upcoming year, the economist said.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback