China’s services activity expansion dampened by ‘trade environment’ concerns: Caixin PMI

China’s services activity expanded at a slower pace in November, pressured by easing new business growth, including in exports, a private sector survey showed, as the economy braces for a rocky ride of more US tariffs under a second Trump administration.

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The Caixin/S&P Global services purchasing managers’ index (PMI), released on Wednesday, fell to 51.5 from 52 in October, but remaining above the 50-mark that separates expansion from contraction on a monthly basis.

That aligns with the official PMI released on Saturday, which showed non-manufacturing activity weakened to 50.

China’s economy has faced constant pressure from multiple fronts this year, with consumer and business confidence hit by a prolonged property downturn, local government debt risks and weakening global demand.

Beijing has responded with a series of policy measures, including increased fiscal support and monetary easing, to shore up economic growth.

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While markets expect more support from policymakers to bolster the recovery, US president-elect Donald Trump’s threat to impose tariffs in excess of 60 per cent on Chinese imports has added a fresh layer of uncertainty to the world’s second-largest economy.

  

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