China's service sector logs strong growth in December

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

The Caixin services PMI 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.

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.