China Caixin Services PMI for December 48.0 (vs. prior 46.7)

I posted the official Chinese PMIs over the weekend:

• China official PMIs: Manufacturing 47.0 (vs. prior 48.0) & Services 41.6 (prior 46.7)

And the Caixin manufacturing PMI earlier this week:

• China PMI data: Caixin Manufacturing PMI December 49.0 (previous 49.4)

China's COVID-19 Covid-19 Covid-19 or the novel Coronavirus is a pandemic that has yielded wide ranging economic turmoil and volatility across financial markets in 2020. The first cases of Covid-19 were reported in Wuhan, China in late 2019. Since then, the virus has expanded globally, infecting millions worldwide. The virus has been extremely controversial, namely in the United States, which became heavily politicized during the 2020 presidential election. The Covid-19 pandemic is completely unprecedented in modern ti Covid-19 or the novel Coronavirus is a pandemic that has yielded wide ranging economic turmoil and volatility across financial markets in 2020. The first cases of Covid-19 were reported in Wuhan, China in late 2019. Since then, the virus has expanded globally, infecting millions worldwide. The virus has been extremely controversial, namely in the United States, which became heavily politicized during the 2020 presidential election. The Covid-19 pandemic is completely unprecedented in modern ti Read this Term surge is weighing on China's economy. Services improved but remained in contraction.

Services PMI for December 48.0 (vs. prior 46.7)

• Composite PMI is 48.3 (prior 47.0)

From the report on the services PMI (in brief):

• Both supply and demand shrank in the sector
• Employment in the sector continued to deteriorate in December.
• Prices remained stable.
• Optimism improved significantly. Service providers expressed strong confidence in an economic recovery following the easing of Covid containment measures. The gauge for expectations for future activity rose nearly 4 points month-on-month, logging the joint highest reading since May 2021.

Those last two bullet points are cause for some optimism.