China Caixin Services PMI (Dec): 53.1 beats prior 52.1, AUD/USD firm

The Caixin/Markit services Purchasing Managers’ Index (PMI) has risen to 53.1 in December from 52.1 in November.

This leaves the outlook solid with the reading above the expansion level of 50, a point that separates growth from contraction on a monthly basis.

Reuters reported that ”activity in China’s services sector expanded at a faster pace in December amid higher demand and easing inflationary pressure but continuing small-scale COVID-19 outbreaks weighed on the outlook, a private sector survey showed on Thursday.”

Key notes

”The survey, which focuses more on small firms in coastal regions, tallied with those of an official survey, which also showed the expansion in the services sector sped up.”

”Analysts say the services sector, which has been slower to recover from the pandemic than manufacturing, is more vulnerable to sporadic COVID-19 outbreaks and anti-virus measures, with leisure and tourism businesses hurt the most.”

”Most of China’s recent local cases have been in the northwestern province of Shaanxi, where the capital city Xian has been on lockdown to control the spread of the disease.”

AUD/USD is steady trading around 0.7213 after the data from a low of 0.7205 on the session so far. 

About the Caixin Services PMI™

The Caixin Services PMI™, released by Markit Economics, 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.