China Services Sector Returns to Growth

China's official NBS Non-Manufacturing PMI rose to 50.2 in September 2026 from 49 in each of the previous two months, beating market expectations of 49.3. The latest reading signals a return to growth in the non-manufacturing sector, with both construction activity (50.3 vs 46.9 in August) and services activity (50.2 vs 49.3) moving into expansion. Within the services sector, indices for telecommunications, broadcasting, television and satellite transmission services, monetary and financial services, and insurance were all above 55, while indices for capital market services and real estate remained below the 50 threshold. Among the main components, new orders went up (46.5 vs 44.1), reflecting increases in both the construction and services sectors. On the price front, both input prices (52.5 vs 51.1) and sales prices (50.3 vs 49.3) increased. Employment rose slightly (45.9 vs 45.4), while business expectations also improved (55.5 vs 55.0).

China's official NBS Non-Manufacturing PMI held at 49.0 in August 2026, unchanged from July and below expectations of 49.5, pointing to a continued contraction in non-manufacturing activity. The business activity index was unchanged at 49.3, while the construction index edged down to 46.9 from 47.0. Within services, wholesale, retail, and capital market services remained below the 50.0 threshold, while postal services, telecommunications, broadcasting, television and satellite transmission services, and internet software and IT services remained strong. Meanwhile, the new orders index fell to 44.1 from 44.4, indicating weaker market demand, with construction orders rising to 42.4 from 40.1 and services orders declining to 44.5 from 45.2. On prices, input costs rose to 51.1 from 49.7, while sales prices increased to 49.3 from 47.9. Employment was unchanged at 45.4, while business expectations eased to 55.0 from 55.4, indicating firms remained optimistic about future activity.

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.