China's services sector hits a speed bump

Business Dec 03, 2025

China's services sector just saw its slowest growth in five months, with November's index dropping to 52.1.
While that number still means things are growing, it's the weakest pace in five months—hinting that people aren't spending as much and the economy is feeling the strain.

Why this matters for China (and beyond)

Services are a big deal for China's recovery, especially now that housing prices and jobs aren't looking great.
The government has tried to get people out and spending—think travel promos and holiday deals—but services still make up just 21% of China's GDP (compared to over 40% in the US).
Even so, thanks to earlier strong months, China could still hit its 5% annual growth target if things don't slow down further.