(Yicai) Jan. 6 -- China's services activity accelerated in December to the highest growth pace in the second half of last year, according to a widely-watched private survey.

The Caixin services purchasing managers' index, which polls small and private businesses, rose to 52.2 last month from 51.5 in November, data released by financial media group Caixin showed today. The index has remained above the 50 expansion threshold for 24 consecutive months.

In comparison, the business activity index for the service industry published by the National Bureau of Statistics, which focuses on large, state-owned enterprises, surged to 52 from 50.1 in the period.

The synergy of existing policies and additional stimulus measures introduced since September has continued to act on the market, producing more positive factors and contributing to the overall economic operation, said Wang Zhe, senior economist at Caixin Insight Group.

The main socio-economic development targets of the year will likely be achieved, but the sustainability and effectiveness of the earlier policies require further monitoring, he added.

The new orders sub-index soared to the highest in five months in December, as domestic supply and demand expanded at a faster pace. Meanwhile, external demand contracted, with new export orders falling below 50 for the first time since August 2023.

The employment sub-index dropped into contraction territory for the first time in four months in December.

This year, the external environment is expected to become more complex, requiring early policy preparation and timely responses, Wang said. Future policies should focus on increasing household income and improving people's livelihoods, he noted.

The Caixin manufacturing PMI came in at 50.5 in December, down from a five-month high of 51.5 in November. As a result, the Caixin composite PMI fell to 51.4 from 52.3.

Editor: Futura Costaglione