China services sector activity hits 17-month high in December

Beijing

GROWTH in China's services sector accelerated to a 17-month high in December, a private survey showed, adding to views that the world's second-largest economy is entering the new year with stronger momentum.

The strong pickup mirrored improvements in manufacturing surveys earlier this week, as market watchers debate whether China's leaders will settle for a more modest growth target this year in order to focus on more pressing issues such as an explosive growth in debt.

The services PMI rose to 53.4 in December on a seasonally adjusted basis from 53.1 in November, the Markit/Caixin services purchasing managers'…