Analysts at TD Securities point out that China’s Caixin services index rose to 53.9 in Dec from 53.8 in November, reaching a six month high and beating market expectations.
Key Quotes
“As a result the composite Caixin PMI rose to 52.2 in Dec, a 5 month high, from 51.9 in Nov. The gain in China’s Caixin service sector sentiment gauge contrasted with the decline in the manufacturing PMI, which moved into contraction territory.”
“The divergence between manufacturing and service sector sentiment suggests that not all is negative for China’s economic trajectory, though we still expect further stimulus measures to be implemented in the months ahead as overall growth continues to be pressured lower.”
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