China December Services PMI Slumps to 6-Month Low as Recovery Fades

China's economic engine is losing steam. According to Reuters, private sector data released on January 5, 2026, shows that China December Services PMI growth hit a 6-month low. The slowdown in the services sector, which has been a primary driver of post-pandemic recovery, signals deepening domestic demand issues.

China December Services PMI Signals Consumer Fatigue

The private survey highlights a cooling trend in consumer-facing industries. Despite the year-end holiday season, the expansion in services was notably weaker than expected. This suggests that Chinese consumers remain cautious about spending, likely due to a shaky property market and uncertain employment prospects. The PMI staying near the 50-point mark indicates a narrow margin between expansion and contraction.

Market Eyes More Stimulus from Beijing

Investors are now questioning whether current support measures are sufficient. With both manufacturing and services showing signs of exhaustion, the pressure is on Beijing to deliver more aggressive fiscal and monetary stimulus. Analysts suggest that without a meaningful boost to household wealth, the 2026 growth targets may be at risk.