China services expansion cools off despite recent stimulus push

The Caixin China services purchasing managers’ index fell to 51.5 in November, versus 52.0 the previous month, according to a statement released by Caixin and S&P Global on Wednesday. The median forecast of economists surveyed by Bloomberg was 52.4. Any reading above 50 suggests an expansion.

Authorities have announced a slew of supportive measures since late September, including rate cuts and a $1.4 trillion program to help indebted local governments, leading to China showing tentative signs of recovery since October.

Expectations are high that top Chinese leaders will use the annual closed-door Central Economic Work Conference next week to discuss keeping the 2025 growth goal in line with this year’s target of around 5%, despite Donald Trump’s return to the White House heralding a tariff war that could decimate bilateral trade.

Policymakers will also likely set a higher-than-usual deficit target of 3.5% to 4% of gross domestic product, economists at UBS Group AG and Barclays Plc said earlier. That would open the door to more central government borrowing to shore up the economy.