Non manufacturing PMI dipped slightly in December, but continues to expand.
Falling temperature seems to have chilled China’s economic growth approaching year-end. The country’s non-manufacturing purchasing managers index is down to 54.6 last month, a touch lower from the figure in November.
While a reading above 50 shows expansion, experts acknowledge that the ease in industrial production has spilled over into the non-manufacturing areas.
"The decline is mainly due to slowing factory churn-out last month, dragging down those serving the manufacturing industry. Of course, the seasonal factor also played a role." said Cai Jin, Deputy Director, China Federation of Logistics & Purchasing.
Figures released earlier this week showed a slack in China’s manufacturing activity last month. Yet not everything shrinks in winter time. Consumption-led practices, for instance, provide a major push behind the service industry growth.
"Modern service industry, such as software, information technology, and retails all remain at high levels, with their readings near 60. Generally speaking, business activity index of the non-manufacturing sector is still fairly high." said Meng Qingxin, Director, Dept. of Services Survey Center, NBS.
Analysts also point out that new orders index remains the same as in November, providing a sound base for the industry going forward.
