The expansion in China’s services sector took a breather in December, coming down from a seven-month high as the growth in new export business slowed, a Caixin-sponsored survey showed.
The Caixin China General Services Business Activity Index fell to 52.5 in December from 53.5 in November, but the reading showed that business activity across the services sector continued to expand. A number above 50 indicates an expansion in activity, while a figure below that points to a contraction.
Along with a slowing expansion in the country’s manufacturing activity, the Caixin China Composite Output Index, which covers both manufacturing and service companies, dropped to 52.6 in December from a 21-month high of 53.2 in the previous month.
The reading showed that “China’s overall economy continued to stabilize,” said Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group Ltd., an affiliate of Caixin Global.