ECONOMY

China Services Growth Slows as Supply, Demand Moderate, Caixin PMI Shows

Published: Feb. 5, 2025 9:45 a.m. GMT+8

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Expansion in China’s services sector slowed in January, with supply and demand slowing while employment contracted further, according to a Caixin-sponsored survey published Wednesday.

The Caixin China General Services Business Activity Index, which provides an independent snapshot of operating conditions in industries such as retail and tourism, came in at 51 in January, down from December’s seven-month high of 52.2.

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In January, the Caixin China General Services Business Activity Index dropped to 51 from 52.2 in December, indicating slowed expansion in China's services sector.
Employment in the sector contracted for the second month, with service provider activities and new business growth at their slowest pace in four months.
Input costs increased due to rising wages and materials, while businesses grew more optimistic despite lower-than-average future activity expectations.

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Who’s Who

Caixin: Caixin sponsors the China General Services Business Activity Index, providing an independent overview of operating conditions in sectors like retail and tourism in China. The index, a key early indicator of China's business activity, showed a slowdown in the services sector in January. Caixin's economic indexes, including the Composite PMI covering both manufacturing and services, reflect trends and challenges in China's economy. Wang Zhe, a senior economist at Caixin, provides insights into these economic trends.

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