A little earlier today the People's Bank of China cut the onshore yuan value a little after a multi-week surge
But now, the Caixin / Markit services and composite PMIs for December
Services 53.9 (highest since August of 2014)
- expected 51.8, prior 51.9
Composite 53.0
- prior 51.6
Key points from Markit:
- Solid increase in services activity accompanied by faster growth in manufacturing output
- Total new work rises to greatest extent in nearly five years
- Employment remains broadly stable
Comment Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group:
- "The Caixin China General Services Business Activity Index rose 2.0 points from the previous month to 53.9 in December, the highest level since August 2014. The expansion in new business picked up for the second consecutive month. Prices charged increased at a slightly slower rate in December, while input prices rose at the joint-fastest pace since February 2013.
- The Caixin China Composite Output Index rose 1.4 points from November to 53.0 in December, with both manufacturing and service sectors seeing stronger rates of growth.
- The December readings of the Caixin PMI surveys also point to improving economic sentiment. Expansions in total new orders and new export business supported optimism among manufacturers and service providers towards the business outlook for next year. Although China's economic growth remains under downward pressure, it is still resilient. However, special attention should be paid to whether future policies will become tighter than expected."
