China’s service sector growth reaches 17-month high in December

BEIJING - Growth in China’s service activity accelerated to its strongest rate in 17 months in December, with companies optimistic about prospects in 2017 on anticipated improvements in market conditions, a survey sponsored by Caixin shows.

The Caixin General Services Purchasing Managers’ Index (PMI) edged up to 53.4 last month from 53.1 in November. Its previous high was 53.8 in July 2015.

Zhong Zhengsheng, director of macro-economic analysis at CEBM Group, a subsidiary of Caixin Insight Group, said the December figures show that recovery in the Chinese economy continued and there was no question that the Government’s growth target of 6.5%-7% for this year could be achieved.

But he also warned that it was unclear if China could create growth drivers powerful enough to offset the impact from gradually-tightening property policies and likely slowing expansion in fiscal and monetary policies. www.webershandwick.cn (ATI).