BEIJING - The HSBC China purchasing managers index (PMI) for the service industry in China remained flat at 52.5 in December from one month before, indicating low momentum for business activities in the sector.

The unchanged PMI had set the lowest record in three months earlier in November, according to a report released by HSBC on Thursday.

The report said the PMI for December was still below 56.9, a long-term average figure. It said confidence in the sector last month also dropped to its lowest level since Nov 2005 as new orders marked the slowest growth in four months.

Meanwhile, the report said average service charges were lowered last month due to enhanced competition while average costs rose.

Qu Hongbin, HSBC China's chief economist, said the PMI has continued at low levels for nearly three months, which indicated a slowdown in the sector.

Qu added that, as the manufacturing sector remains weak and the real estate market cools down in the country, shrinking external demand will lead to more challenges to the economy, which requires policymakers to roll out some more loosening measures.