December PMIs Flag Cooling China Services as U.S. Manufacturing Contracts Again

Overview

• China’s services PMI slipped to 52.0 in December, a six‑month low that still signals expansion.
• China’s composite PMI inched up to 51.3, indicating overall activity continued to grow modestly.
• S&P Global reported the slowest growth in new orders since June, a fifth straight month of job cuts, and rising backlogs at Chinese firms.
• Input costs for Chinese service providers rose while prices charged fell for the second time in three months, reflecting intense competition and margin pressure.
• The ISM manufacturing PMI for the United States declined to 47.9 in December, marking a tenth consecutive month in contraction and coming in below analyst expectations, including a 48.7 consensus from FactSet.