Financial News: Expansion In China's Service Sector Slows In December

Expansion In China's Service Sector Slows In December

01/05/2026 - 00:41:00 (RTTNews)

(RTTNews) - China's service sector expanded moderately in December, albeit at a slower pace, as growth in new orders softened the most in six months, survey data from S&P Global revealed on Monday.

The headline RatingDog China Purchasing Managers' Index posted 52.0 in December, down from 52.1 in the previous month. Despite the slower expansion, the service sector has now grown for three consecutive years. Nonetheless, the rate of growth was the softest in six months.

Higher new business supported expansion in services activity. The growth in new business was the weakest in six months as new export business declined.

Further, headcounts decreased for the fifth straight month in December. Firms reduced both full-time and part-time employees. As a result, the volume of outstanding business increased fractionally.

Average input prices increased for the tenth straight month in December. Moreover, the rate of growth was the highest seen in 2025. However, service providers reduced their output charges largely due to competition.

Finally, business sentiment improved to the highest since March. Service providers expect stronger market conditions and business expansion plans to drive sales growth and push activity levels higher in 2026.

"Overall, the services sector ended 2025 with a "modest growth, high expectations" profile," RatingDog Founder Yao Yu said.

"While the recovery in expectations provides psychological support for the 2026 outlook, the contraction in employment and external demand volatility remain key constraints facing the sector," said Yao.

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