China's Service Sector Expansion Continues

In a recent report released by S&P Global on Monday, China's service sector demonstrated a significant expansion in December. The Caixin China General Services Business Activity Index reached 52.2, an increase from last month's 51.5, indicating a faster pace of growth than anticipated by investors.

Dr. Wang Zhe, Senior Economist at Caixin Insight Group, commented on the findings, "The supply and demand dynamics have improved, leading to accelerated growth in business activity and total new orders for the 24th consecutive month. However, it's noteworthy that overseas demand has seen a decline, reaching its lowest level since December 2022."

Composite PMI Sees Slight Decline

Despite the positive momentum in the service sector, the composite PMI for December was recorded at 51.4, slightly lower than the previous month's 52.3. This data suggests a mixed performance across different sectors of the economy, with the service sector leading the way in growth.