China's services activity expanded at the fastest pace in seven months in December, buoyed by accelerated growth in domestic demand, although overseas orders declined, according to a private sector survey showed on Monday.

The Caixin/S&P Global Services purchasing managers' index (PMI), which provides an independent snapshot of operating conditions in industries as such retail and tourism, rose to 52.2 in December from 51.5 the previous month.

That growth pace was the fastest since May 2024, surpassing the 50-mark that separates expansion from contraction on a monthly basis.

The readings also broadly align with the country's official PMI data released last week, which saw non-manufacturing activity considerably recover to 52.2 in December, after a neutral reading of 50.0 in November.

Separately, the survey showed that new business sub-index rose to 52.7 in December from 51.8 in November. However, inflows from abroad fell for the first time since August 2023.

A business confidence reading remained positive but dipped to the second-lowest since March 2020, with companies worried by potential international trade disruption after Donald Trump returns to the White House.

Exports could also face tariff risks under a second Trump administration. Authorities have recently introduced measures to revitalise growth. (Reuters)