China's Service Sector Growth Hits 6-Month Low

December PMI Data Shows Slowdown

China's service sector experienced its slowest growth in six months during December 2025, according to the S&P Global China General Services PMI. The index dropped to 52.0 from 52.1 in November, marking the lowest level since June. While the reading remains above the critical 50 threshold that distinguishes between expansion and contraction, the decline signals a softening in service sector activity.

Drivers of the Slowdown

The moderation in service sector growth was primarily attributed to softer new business growth and weakening external demand. These factors collectively contributed to the slowdown, as businesses faced challenges in maintaining momentum amid a changing economic landscape. Despite these headwinds, the sector continues to expand, albeit at a more subdued pace.