China's Caixin services PMI: Solid upturn in business activity

China's Caixin services PMI for December came at 53.9 vs 51.8 exp and 51.9 last, which represents a solid upturn in Chinese business activity at the end of 2017.

Meanwhile, the Composite Output Index picked up to 53.00 from 51.6 in November "to indicate the fastest rate of activity growth for a year", the report noted. 

Quotes from Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group

The Caixin China General Services Business Activity Index rose 2.0 points from the previous month to 53.9 in December, the highest level since August 2014.

The expansion in new business picked up for the second consecutive month.

Prices charged increased at a slightly slower rate in December, while input prices rose at the joint-fastest pace since February 2013.

The Caixin China Composite Output Index rose 1.4 points from November to 53.0 in December, with both manufacturing and service sectors seeing stronger rates of growth.

The December readings of the Caixin PMI surveys also point to improving economic sentiment.

Expansions in total new orders and new export business supported optimism among manufacturers and service providers towards the business outlook for next year.

Although China’s economic growth remains under downward pressure, it is still resilient.

However, special attention should be paid to whether future policies will become tighter than expected.”