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China's service sector activity rises slightly in December

(Xinhua) Updated: 2016-01-06 13:54

BEIJING -- Business activity in China's service sector rose in December on soft client demand, a private survey showed Wednesday.

The Caixin China General Services PMI (Purchasing Managers' Index) came in at 50.2 in December, above the 50-point level, which demarcates contraction and expansion.

However, the December reading was lower than 51.2 for November, according to the survey conducted by financial information service provider Markit and sponsored by Caixin Media Co Ltd.

December data pointed to a slowdown in the growth of China's service sector, with business activity and new orders rising only marginally at the end of the year, the Caixin/Markit report said.

Slower growth in activity and new business led companies to remain relatively cautious with regard to their growth projections for the coming year, the report said.

The PMI reading for the service sector is stronger than that for manufacturing, which has stayed below the 50-point mark for 10 consecutive months and declined to 48.2 in December.

Such a contrast is seen by economists as a sign of the preliminary effect of China's economic restructuring, which focuses more on the service sector while eradicating overcapacity in industrial sectors.

In total, the Caixin China Composite PMI, which covers both manufacturing and services, edged down to 49.4 in December from November's 50.5, signalling reduced business activity.

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