China’s services sector posted the fastest growth in over three years in December, according to a survey produced by Caixin. The news is a further sign that the world’s second-largest economy is on an upturn.
The Caixin China General Services Business Activity Index rose to 53.9 in December, rising from 51.9 in November. It is the highest score posted since August 2014. A number above 50 suggests an expansion in activity, while a figure below represents a contraction.
The tertiary sector accounted for 54.1% of China’s economic output in the first half of last year, up from 51.6% in 2016 and 50.2% in 2015, according to the National Bureau of Statistics. The services sector is particularly important to Chinese policymakers as it will be the main source of job creation in the coming years.