China Services Activity Unexpectedly Expands

2026-06-30 01:40 By Kyrie Dichosa 1 min. read

China’s official NBS Non-Manufacturing PMI rose to 50.2 in June 2026 from 50.1 in May, defying expectations of a slight contraction to 49.9.

The business activity index for the services sector rose by 0.1 percentage point to 50.4, supported by strong activity in telecommunications, internet software and IT services, financial services, and insurance, all above 55.

In contrast, the business activity indices for air transport and real estate remained below 50.

Meanwhile, the construction index also improved to 49, 0.2 percentage points higher than in May.

In terms of new orders, the index improved to 48 from 45.

By industry, the new orders index for the construction sector was 46.3 (+2.8 pp), while the service sector came at 48.4 (+3.1 pp).

On prices, input prices fell to 49.7 from 52.2, suggesting easing price pressures, while sales prices fell to 48.4 from 48.8.

Employment also edged up to 45.8 from 45.6.

Lastly, business expectations rose to 55.3 from 54.8, showing improved sentiment.



News Stream
China Services Activity Returns to Contraction
China's official NBS Non-Manufacturing PMI fell to 49.0 in July 2026 from 50.2 in June, pointing to a renewed contraction after two months of modest expansion and defying expectations of a flat reading. The business activity index for the services sector declined to 49.3 from 50.4, while the construction index dropped to 47.0 from 49.0. Within services, postal services, telecommunications, broadcasting, and culture and entertainment remained strong, with business activity indices above 55.0, while capital market services and real estate remained in contraction. Meanwhile, the new orders index fell to 44.4 from 48.0, with construction declining to 40.1 from 46.3 and services easing to 45.2 from 48.4. On prices, input costs were unchanged at 49.7, while sales prices slipped to 47.9 from 48.4. Employment also edged down to 45.4 from 45.8. Still, business expectations improved slightly to 55.4 from 55.3, indicating firms remained optimistic about future activity.
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China Services Activity Unexpectedly Expands
China’s official NBS Non-Manufacturing PMI rose to 50.2 in June 2026 from 50.1 in May, defying expectations of a slight contraction to 49.9. The business activity index for the services sector rose by 0.1 percentage point to 50.4, supported by strong activity in telecommunications, internet software and IT services, financial services, and insurance, all above 55. In contrast, the business activity indices for air transport and real estate remained below 50. Meanwhile, the construction index also improved to 49, 0.2 percentage points higher than in May. In terms of new orders, the index improved to 48 from 45. By industry, the new orders index for the construction sector was 46.3 (+2.8 pp), while the service sector came at 48.4 (+3.1 pp). On prices, input prices fell to 49.7 from 52.2, suggesting easing price pressures, while sales prices fell to 48.4 from 48.8. Employment also edged up to 45.8 from 45.6. Lastly, business expectations rose to 55.3 from 54.8, showing improved sentiment.
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