In December, the Caixin China general services purchasing manager’s index showed some relief for the industry, with a score of 48, though still in contraction zone.
After hitting a six-month low of 46.7 the month before, the print improved in the most recent report.
The 50-point threshold divides expansion from recession. The PMI index is measured on a monthly basis and represents growth or decline from the previous month.
Caixin Insight Group’s senior economist Wang Zhe said, “Optimism improved significantly,” and the indicator for forecasts of future activity increased by about 4 points from a month before.
“Service providers expressed strong confidence in an economic recovery following the easing of Covid containment measures,” said Wang.