BEIJING, Jan 4 Reuters China39;s services activity expanded at the fastest pace in five months thanks to a solid rise in new business, a privatesector survey showed on Thursday, lifting the degree of optimism in the sector to a threemonth high.

The data, offering a snapshot of business sentiment, was in contrast to an official survey on Sunday which showed a subindex of services activity shrank again at the end of 2023, raising calls for more stimulus measures in the new year.

The CaixinSP Global services purchasing managers39; index PMI rose to 52.9 in December from November39;s 51.5, above the 50mark separating growth from contraction and posting the highest reading since July.

Aided by robust new business which expanded at the fastest rate since May, firms attributed the improvement to rising customer numbers and spending.

The overall number of customers rose slightly in December compared with November, said a restaurant owner surnamed Jin, based in Hangzhou, a city in eastern Zhejiang province.

But still, businesses in 2023 were worse than 2022 due to the macro economic trend, Jin said.

Foreign demand for Chinese services also increased last month. Around 214,000 travellers from France, Germany, Italy, the Netherlands, Spain, and Malaysia entered China in December after the visafree policy took effect, up 28.5 from November, according to the National Immigration Administration.

Improved demand conditions led firms to increase their staffing levels as they…