| Consensus | Consensus Range | Actual | Previous | |
| Composite Index | 51.0 | 51.0 to 51.0 | 51.3 | 51.2 |
| Services Index | 52.0 | 51.8 to 52.0 | 52.0 | 52.1 |
Highlights
The S&P Global PMI composite index for China rose to 51.3 in December from 51.2 in November, indicating conditions in the aggregate economy improved for the seventh consecutive month. The business activity index for China's services sector, also published today, eased to 52.0 in December from 52.1 in November, while the headline index for the manufacturing PMI survey, published last week, showed stagnation in the sector. Official PMI survey data, also published last week, also showed stagnation in both the manufacturing sector and non-manufacturing sector in December.
Respondents to today's service sector survey reported slower growth in output and new orders in December and a small decline in new export orders after a previous increase. Payrolls were also reported to have been cut for the fifth consecutive month while the survey's measure of confidence improved. Respondents also reported another big increase in input costs but the second reduction in selling prices in the last three months.
The China RPI and the RPI-P fell from minus 29 and minus 30 to minus 34 and minus 38 respectively, indicating that recent Chinese data in sum are coming in close to consensus forecasts.
Market Consensus Before Announcement
The services index is expected to hold nearly steady at 52.0 in December from 52.1 in November. The composite is seen at 51.0 versus 51.2. Both suggest ongoing modest expansion.
Definition
The S&P China Services PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private service sector companies. The panel has been carefully selected to accurately replicate the true structure of the services economy.
The S&P China Composite PMI is a weighted average of the Manufacturing Output Index and the Services Business Activity Index, and is based on original survey data collected from a representative panel of over 800 companies based in the Chinese manufacturing and service sectors.
Description
The PMIs have developed an outstanding reputation for providing the most up-to-date possible indication of what is really happening in the private sector economy by tracking variables such as sales, employment, inventories and prices. The indexes are widely used by businesses, governments and economic analysts in financial institutions to help better understand business conditions and guide corporate and investment strategy. In particular, central banks in many countries use the data to help make interest rate decisions. PMI surveys are the first indicators of economic conditions published each month and are therefore available well ahead of comparable data produced by government bodies.