FX.co ★ China Services PMI Hits 4-Month Peak

China's official NBS Non-Manufacturing PMI climbed to 50.2 in December 2025, up from 49.5 in November, reaching its highest level since August and surpassing market predictions of 49.8. This improvement underscores Beijing's continuing initiatives to bolster domestic demand through enhanced fiscal expenditure, consumer incentives, and supportive policy interventions, which have fortified service sector activities towards the year's end. There was a slower decline in both new orders (47.3 compared to 45.7 in November) and employment (46.1 compared to 45.3), while foreign demand remained subdued (47.5 compared to 47.9). Supplier delivery times remained relatively stable (51.3 compared to 51.2), reflecting steady supply chains and minimal logistical issues. Regarding pricing, input costs continued to increase, albeit with a slight reduction in pace (50.2 compared to 50.4), while selling prices decreased more sharply (48.0 compared to 49.1). Lastly, sentiment reached a nine-month high (56.5 compared to 56.2), buoyed by expectations of further policy easing and a gradual recovery of domestic demand.