China’s services sector activity expanded at the fastest pace in five months in December, according to a widely watched private survey, offering some optimism as policymakers in Beijing seek to stimulate a faltering recovery in the world’s second-largest economy.The seasonally adjusted Caixin services purchasing managers’ index released on Thursday rose to 52.9 in December from 51.5 the previous month, above the 50-point threshold that separates expansion from contraction. The figure was ahead of the forecast of 51.6 by economists polled by Bloomberg.

Activity expanded for the 12th consecutive month and at the fastest pace since July. New orders increased, export demand grew and companies’ outlooks for 2024 improved.

“Optimism prevailed?.?.?.?with enterprises expressing confidence in an improved economic outlook for the coming year,” said Wang Zhe, senior economist at Caixin Insight Group.