The Caixin China General Services PMI fell to 52.5 in December 2019 from a seven-month high of 53.5 in the previous month. New business increased the most since September despite a slowdown in export order growth, while the rate of job creation was only marginal, with a number of companies adopting relatively cautious approaches to hiring amid efforts to contain costs and boost efficiency. Service providers recorded higher backlogs of work at the end of 2019, recovering from November's fall, as greater volumes of new work imparted pressure on capacities. On the price front, input cost inflation eased to a nine-month low, while output charges fell for the first time since September 2018. Finally, business sentiment edged down to the second-lowest on record, amid concerns over ongoing trade tensions, relatively subdued economic growth and staff shortages. Services PMI in China averaged 52.42 Index Points from 2012 until 2019, reaching an all time high of 54.70 Index Points in May of 2012 and a record low of 50 Index Points in July of 2014. source: Markit Economics
Services PMI in China is expected to be 53.00 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Services PMI in China to stand at 52.50 in 12 months time. In the long-term, the China Services PMI is projected to trend around 52.20 Index Points in 2020, according to our econometric models.