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![China is set to release fourth quarter and full-year GDP data on Jan.19 [Xinhua]](http://thebricspost.com/wp-content/uploads/2013/11/china-services.jpg)
China is set to release fourth quarter and full-year GDP data on Jan.19 [Xinhua]
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 Markit/Caixin survey.
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 report said.
“In light of the setback to services sector growth, the government needs to gradually relax restrictions in the sector,” said He Fan, chief economist at Caixin Insight Group.
Slower growth in activity and new business led companies to remain relatively cautious with regard to their growth projections for the coming year, it added.
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.
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.
A sub-index measuring new business fell to 50.6 in December from November’s 51.1.
China is set to release fourth quarter and full-year GDP data on Jan.19.
Source: Agencies
