A private gauge of China’s services activity expanded in January, likely helped by a boost from public holidays.
The Caixin services purchasing managers’ index fell to 52.7 last month from 52.9 in December, Caixin and S&P Global said in a statement Monday. That falls short of economists’ consensus estimate of 53. A reading over 50 indicates expansion from the prior month.
“The improved market resulted in growth in business output and sales, though at a slower pace than in the previous month,” Wang Zhe, Senior Economist at Caixin Insight Group, said in a statement accompanying the release.
Official data last week showed manufacturing activity shrinking for the fourth straight month while services activity expanded for the first time in three months. The new year public holiday as well as the approaching Lunar New Year likely lifted tourism and retail activities.
Consumers have been more willing to spend on services such as traveling rather than goods since China reopened from Covid, a trend that some economists see continuing this year amid a grim job market. The rebound in traveling was also moderate — for the last major public holiday, domestic tourism only recovered to pre-pandemic level during the Golden Week in October, undershooting official projections.
bloomberg.com