Caixin services PMI reaches 52.9 in December

The Caixin services purchasing managers' index (PMI), a private gauge of the country's service sector, rose to 52.9 in December, increasing 1.4 percentage points over the previous month and hitting the highest level in the past five months, according to a private survey released on Thursday.

The index for service activity remains above the expansion-contraction line for consecutive 12 months in 2023, indicating the continuous rebound of the country's service sector, according to the Caixin report.

"It signaled the country's service sector has strong and improved growth momentum at the end of 2023, as the PMI readings have kept going up over time ," read the report, noting that both services supply and demand expanded, as the market continued to recover. The gauges for business activity and total new orders have seen a considerable growth in the past six months.

Meanwhile, companies and entrepreneurs expressed greater optimism over the year-ahead outlook. Employment has also ticked up, the first recorded improvement in past three months, though some firms have maintained cautious approach to hiring.