| Consensus | Consensus Range | Actual | Previous | |
| Composite Index | 51.6 | 51.3 | ||
| Services Index | 51.5 | 51.5 to 51.7 | 52.3 | 52.0 |
Highlights
The S&P Global PMI composite index for China rose to 51.6 in January from 51.3 in December, indicating conditions in the aggregate economy remained subdued but steady. The business activity index for China's services sector, also published today, picked up to 52.3 in January from 52.0 in December.
Respondents to today's service sector survey reported stronger growth in output and new orders in January and a small increase in new export orders after a previous decline. Payrolls were also reported to have risen for the first time in six months while the survey's measure of confidence weakened. Respondents also reported a smaller increase in input costs and broadly stable selling prices.
Market Consensus Before Announcement
The consensus sees services is at 51.5 versus 52.0 in December.
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.