China’s services sector ended 2025 with slower momentum, as activity expanded at its weakest pace in six months amid softer new business and declining foreign demand, according to a private-sector survey released on Monday, reported by multiple media outlets.
The RatingDog China General Services purchasing managers’ index (PMI) edged down to 52.0 in December from 52.1 in November, marking the fourth consecutive monthly slowdown. While readings above 50 indicate expansion, the latest figure represented the weakest growth since June.
New business growth cooled to a six-month low, while new export orders slipped back into contraction after expanding in November. Survey respondents cited lower tourist arrivals as a key factor, with analysts pointing to strained relations with Japan following Japanese Prime Minister Sanae Takaichi hawkish comments regarding Taiwan.
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Despite the slowdown, business sentiment improved. The expectations sub-index rose to a nine-month high, driven by forecasts of better market conditions and expansion plans for 2026. RatingDog founder Yao Yu described the sector’s outlook as having “high expectations,” while warning that shrinking employment and volatile external demand remained significant constraints.
The survey also showed companies reduced staffing levels for a fifth consecutive month, letting both full-time and part-time workers go. At the same time, input costs rose for a tenth straight month due to higher labour and raw material prices. Firms tended to lower selling prices amid intensifying competition.
The softer services data underscored broader challenges facing China’s economy, including weak consumer spending, a prolonged property downturn and growing external scrutiny of its large trade surplus, according to Reuters. Nevertheless, the country is on track to meet its annual growth target of around 5 percent this year, thanks in part to government efforts to combat deflationary pressures.
