The HSBC China Composite PMI data, which covers both manufacturing and services, showed that the rate of expansion eased from an eight-month high in November, despite an increased amount of output for the fifth successive month in December.
The HSBC PMI Index, released yesterday, was 51.2 in December, down from 52.3 in November.
Chinese service providers also reported increased business activity in December. However, the rate of growth eased to a marginal pace that was the weakest since August 2011, according to the report.
The HSBC China Services Business Activity Index was 50.9 in December, down from 52.5 in November.
“Despite the moderation of the headline China Services PMI index, which reflected slower new business growth, labour market conditions improved for the fourth month in a row,” HSBC China chief economist and co-head of Asian economic research Hongbin Qu said.
“We expect the steady expansion of manufacturing sectors to lend support to service sector growth,” he said.
“Moreover, the implementation of reforms, such as lowering entry barriers for private business in service sectors and the expanded VAT reforms, should help to revitalise service sectors in the year ahead.”
The HSBC report found staffing levels in China’s service sector increased for the fourth consecutive month in December and the job creation rate accelerated to a modest six-month high.
The degree of positive sentiment towards services remained historically weak, with 26 per cent of panellists expecting output to increase over the next 12 months, the report said.
