Growth in China's services industry picked up in December, an official survey showed on Sunday, as the sector continued to show solid expansion.
China's GDP, a measure of economic growth, rose by 6.8% year-on-year from July to September, slowing from a 6.9% pace in the first and second quarters.
This year has been strong, with the average PMI the best since 2006, Harker said.
However, full-year growth was still the fastest in three years at 3.5 percent, raising the possibility that the Monetary Authority of Singapore (MAS) could tighten its exchange rate-based monetary policy this year.
"Interestingly, the wages component dipped in December, but at 60.2 it does point to the prospect of some pick-up in wages growth", Mr Oliver said.
Resulting from improved demand conditions, Indian manufacturers upped their staffing levels at the end of the year. In fact, job creation accelerated to the strongest since August 2012, the survey said.More news: Winter storm to impact U.S. 12 travel, eastern portion of Idaho County
"The goods-producing economy carries strong momentum into 2018, with new order growth at its highest for nearly eight years and rising backlogs of work pointing to the need for further expansion in capacity", Smith added.
The uptrend was driven by stronger market demand from home and worldwide markets, Dodhia added.
Both new export orders and overall new business received by manufacturers increased at the quickest clip in four months, according to the survey, which is sponsored by Caixin and compiled by worldwide information and data analytics provider IHS Markit Ltd.
Costs of raw materials such as oil and steel rose while prices of materials from Chinese suppliers increased, leading to a sharp rise in input costs in December.
Moreover, as consumer spending recuperated, firms were restricted in their ability to pass on higher cost burdens to clients which further placed upward pressure on firms' margins.
"Challenges remain as the economy adjusts to recent shocks, but the overall upturn was robust compared to the trend observed for the survey history".