FXStreet (Bali) – China’s Caixin December services PMI came in at 50.2 vs 51.2 last, while the composite showed a read of 49.4 vs 50.5.
Key points
Slowest increase in services activity for 17 months, while manufacturers see renewed contraction of output
Composite employment falls for seventh successive month
Both service providers and manufacturers continue to cut
their selling prices in December
Commenting on the China General Services PMI™ data, Dr. He Fan, Chief Economist at Caixin Insight Group said: “The headline Caixin China General Services PMI for December is 50.2, down 1 point from the reading for the
previous month and reaching the lowest point in 17 months.”
“The Caixin Composite Output Index came in at 49.4, below the 50-point neutral level and 1.1 points lower than November’s record. In light of the setback to services sector growth, the government needs to gradually relax restrictions in the sector”, He Fan added.
He Fan also said, to conclude, that “this will release the potential of supply-side reform, improve the economic structure and help with the industrial transformation and upgrading.”
(Market News Provided by FXstreet)