BEIJING--A private gauge of China's services-sector activity dropped in December as the resurgence of the coronavirus restrained overseas demand.
The Caixin China services purchasing managers index fell to 56.3 in December from 57.8 in November, Caixin Media Co. and research firm Markit said Wednesday. But the index still stood above the 50-mark separating expansion from contraction for the eighth straight month, signaling that supply and demand in the services sector continue growing.
"Although not as quick as those recorded in the prior two months, the rate of expansion remained among the steepest recorded over the past decade and marked a further recovery from the coronavirus disease 2019 [Covid-19]," Caixin said.
Employment expanded only marginally, moderating from November, which was the highest level in a decade. The increase in new business softened and was the least marked since September.
The services sector, which accounts for about half of China's economy, had initially been slower to return to growth than the country's industrial sector, but has gathered pace in recent months.
"Both demand and supply in the manufacturing and services sectors continued to expand," said Wang Zhe, a senior economist at Caixin Insight Group.
Entrepreneurs seem confident about further improvements to the economy in the coming year, he said.
China's official non-manufacturing purchasing managers index, a competing gauge, came in at 55.7 in December, down slightly from 56.4 in the previous month, according to the National Bureau of Statistics.
The Caixin PMI is tilted more toward smaller companies, while the official gauge is weighted toward larger companies.
(END) Dow Jones Newswires
01-05-21 2129ET
