China's service sector growth accelerated at the end of the year with solid increase in new business, survey results from S&P Global showed on Thursday. The Caixin services Purchasing Managers' Index rose to 52.9 in December from 51.5 in November.
The reading was forecast to rise slightly to 51.6. A score above 50.0 indicates expansion.
The overall expansion was largely driven by new business as it expanded the most since May. Foreign demand also grew further.
Firms raised their workforce numbers for the first time in three months. Backlogs of work were unchanged in December.
Input price inflation picked up to a five-month high. Fees charged by services companies increased at a marginal pace.
Companies remained upbeat that business activity will increase over the next 12 months in December.
The composite output index that combines manufacturing and services activity posted 52.6 in December, up from 51.6 in November.
