China’s January Caixin Services PMI 54.7 vs 53.9 in December

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Activity in China’s service sector expanded at a faster pace in January, a private gauge showed Monday, a reading that tallies with official data pointing to continued resilience in the sector.

The Caixin China services purchasing managers’ index rose to 54.7 in January –the highest reading since May 2012– from 53.9 in December, Caixin Media Co. and research firm Markit said in a statement.

A reading above 50 indicates an expansion in activity from the previous month while a level below that points to a contraction.

Service providers reported the fastest new-orders growth in 32 months and a 17th straight month of staff expansion, according to the statement.

Monday’s readings point to a good start to 2018 but rising costs could affect the profitability of service providers, said Zhengsheng Zhong, an analysis at CEBM Group.

China’s official nonmanufacturing PMI, which includes the construction sector, edged up to 55.3 in January from 55.0 in December, the National Bureau of Statistics said on Thursday.

Source: MARKET WATCH