China’s services activity expansion dampened by ‘trade environment’ concerns: Caixin PMI

Caixin/S&P Global services purchasing managers’ index aligned with the official gauge, which also showed China’s non-manufacturing activity weakened last month

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Workers unload e-commerce parcels from a bullet train at Shuangliu West Railway Station in Chengdu, southwest China’s Sichuan province. Photo: Xinhua

Published: 10:01am, 4 Dec 2024Updated: 3:16pm, 4 Dec 2024

China’s services activity expanded at a slower pace in November, pressured by easing new business growth, including in exports, a private sector survey showed, as the economy braces for a rocky ride of more US tariffs under a second Trump administration.

The Caixin/S&P Global services purchasing managers’ index (PMI), released on Wednesday, fell to 51.5 from 52 in October, but remaining above the 50-mark that separates expansion from contraction on a monthly basis.

That aligns with the official PMI released on Saturday, which showed non-manufacturing activity weakened to 50.

“The Caixin China General Services Business Activity Index came in at 51.5 in November, down 0.5 points from the previous month, staying in positive territory as the sector has continued to expand since the beginning of last year,” said Wang Zhe, senior economist at Caixin Insight Group.

China’s economy has faced constant pressure from multiple fronts this year, with consumer and business confidence hit by a prolonged property downturn, local government debt risks and weakening global demand.

Beijing has responded with a series of policy measures, including increased fiscal support and monetary easing, to shore up economic growth.

While markets expect more support from policymakers to bolster the recovery, US president-elect Donald Trump’s threat to impose tariffs in excess of 60 per cent on Chinese imports has added a fresh layer of uncertainty to the world’s second-largest economy.