A private sector survey on Monday (Jan. 5) shows China’s service sector growth in December at its slowest pace in six months.
China’s Purchasing Managers Index (PMI) China’s in December has fallen to 52, the lowest reading since June.
The PMI is an economic indicator used to gauge the manufacturing activity in the private sector. A 50-point marks the line between economic expansion and contraction.
The PMI rating was compiled by RatingDog China General Service PMI by S&P Global.
The slowdown comes as new business growth weakened and foreign demand declined.
The survey tracks about 650 Chinese companies and shows firms laying off employees for a fifth straight month due to rising input costs.
It added that falling exports, fewer foreign tourists and a shrinking job market have all contributed to the decline.
China’s economy struggled to grow last year amid a long-standing real estate crisis, deflation and trade tensions with the U.S. and other major markets.
Although official data projects 5 per cent gross domestic product (GDP) growth this year, many economists say it likely overstates the actual situation.
