Growth in China’s services sector accelerated for the second consecutive month at the close of 2018, according to a monthly activity gauge, with results showing stronger business sentiment and foreign demand on the rise.
The Caixin China General Services Business Activity Index rose to 53.9 in December from 53.8 in November, indicating the highest rate of expansion since June. The 50 level denotes neither expansion nor growth.
New export orders reached a six-month high last month, however overall new business ticked down due to weaker demand from domestic consumers.
The business confidence sub-gauge also went up, the survey showed, after three straight months of decline. This index asks service providers to rate their business prospects for the coming year.
The positive findings contrast with similar surveys for the manufacturing sector, which showed that industrial growth had fallen in December for the first time in two years.