In December, the RatingDog China Services PMI edged down to 52.0, a 0.1-point decline from the previous month, marking the third consecutive month of a slight slowdown in the pace of expansion in the services sector. (1) Demand and Expectations: In December, the services sector saw mixed performance on the demand side, with resilient domestic demand coexisting with weak external demand. The overall growth rate of the New Orders Index narrowed, with new export orders returning to contraction territory after a brief rebound in November. Business confidence rose significantly, with the Business Activity Expectations Index climbing to a nine-month high. (2) Price Indices: Price trends remained mixed. Profit margins for service sector enterprises continued to face pressure. Input prices rose for the 10th consecutive month, driven primarily by raw material and labor costs. After a brief rebound in November, selling prices re-entered contraction territory, forcing enterprises to resort to price cuts and promotions to sustain sales. Overall, the significant improvement in business expectations provides confidence-boosting support for the start of 2026, and policy measures are expected to further stimulate service consumption.