The China Caixin Services Dec PMI: 52.5 vs 53.5 prior

The Caixin Services PMI for the month of December has just been released.

The Caixin Services PMI outcome

China Caixin/IHS Markit December services PMI at 52.5 (vs 53.5 in November).
Dec composite PMI (services and manufacturing) at 52.6 vs Nov's 53.2.

Beijing has been counting on a strong services sector to cushion a prolonged slowdown in manufacturing and investment and create jobs for workers laid-off in other areas. Economic growth has cooled to near 30-year lows amid sluggish demand at home and abroad. Caixin's composite manufacturing and services PMI, also released on Monday, slowed to 52.6 in December from 53.2 in November.

About

The Caixin Services PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private service sector companies. The panel has been carefully selected to accurately replicate the true structure of the services economy. The index has stayed above the 50-point margin that separates growth from contraction on a monthly basis since late 2005.

FX implications

The services sector accounts for more than half of the economy, although China's services sector expanded at a slower pace in December following a strong rebound in the previous month. The more downbeat reading suggests services companies remain cautious about the outlook for China's economy despite a flurry of stimulus measures, signs of improvement in the manufacturing sector and a long-awaited US-China trade deal. However, coupled with Friday's dismal US manufacturing PMIs, there is likely to be a soured mood on the street which will likely favour the safe haven's such as the yen, (AUD/JPY bearish), especially in light of the current geopolitics in the Middle East.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.