(Finance) – L ‘Economy of the Services of China began 2025 in the territory of growthsince the new entrance affairs have continued to increase. Having said that, the rhythm of the growth of new business and activities has been attenuated since December. In the meantime, a lack of pressure on the ability has led to another cycle of job cuts among service providers, although companies have become more optimistic about future activity at the beginning of the year. The inflation rate of sales prices has mitigated despite an intensification of costs on costs.
The SMEs of services developed by Caixin/S&P Global has come down to an altitude 51.0 points in January 2025 from previous 52.2 (extended the expansion period started in January 2023). The value remains above the key threshold of the 50 points, which indicates an expansion of the activity, but disappoints the expectations of analysts who indicated an increase to 52.3 points.
“The rhythm of expansion of both the offer and the application is slowed down – he commented Wang Zhe, Senior economist at Caixin Insight Group – While the commercial activity and the new orders grew for the 25th consecutive month, both have expanded to the slower rates of the last four months. The external question bounced in January after having recorded a short -lived drop in the previous month, with the indicator for the new export orders remained in expansive territory for the 16th time in the last 17 months “.
“The employment in the service sector has reduced for the second consecutive month – he added – companies continued to focus on the reduction of personnel and greater efficiency, bringing the employment indicator to the lowest reading since April 2024. A relatively weak market demand and greater operational efficiency have led to First decrease in work backlogs from July 2024“.