The Caixin China General Services PMI rose to 52.2 in December 2024, up from 51.5 in November, exceeding market expectations of 51.7.
Caixin China services PMI up, sentiment weakens
This marked the fastest growth in the services sector since May, driven by a surge in new business. Domestic demand played a significant role in the sales increase, while new export business declined for the first time since August 2023, reflecting weaker foreign interest. Employment decreased for the first time in four months due to resignations and cost-cutting measures. Input price inflation increased for the first time in three months, albeit marginally, driven by higher material and wage costs. Consequently, selling prices rose for the first time since June as companies passed on cost increases to customers.
Business sentiment drops to second-lowest since March 2020
Business sentiment weakened to its second-lowest level since March 2020, driven by concerns over rising competition and the bleak outlook for international trade.
