China Services Growth Slows to 5-Month Low

The RatingDog China General Services PMI edged up to 52.3 in January 2026 from December’s six-month low of 52.0, beating market expectations of 51.8. The reading signaled the strongest services-sector expansion since October, underpinned by faster growth in new business and a renewed rise in foreign sales. In response, firms increased staffing for the first time since July, only the fourth instance of job growth in the past year. Backlogs continued to build at a moderate pace, with little change in the rate of accumulation. On the price front, input costs rose on higher prices for purchased items and fuel, though cost inflation eased to a five-month low, while output charges remained broadly stable. Business sentiment stayed positive but slipped below the 2025 average amid growing concerns over the global growth outlook.

The RatingDog China General Services PMI edged down to 52.0 in December 2025 from 52.1 in November, in line with market expectations. The latest reading marked the softest expansion in the services sector since June, as new orders and business activity grew at their weakest pace in six months due to a renewed decline in foreign sales amid reports of reduced tourist numbers. Meanwhile, employment declined for the fifth consecutive month, with firms shedding both full-time and part-time workers due to cost concerns and company restructuring plans. Regarding prices, input costs rose modestly, driven by higher raw material prices. While modest, the rate of inflation was among the highest seen in 2025. However, firms reduced selling prices amid greater market competition. Lastly, business sentiment improved to a nine-month high, supported by optimism over forecasts of stronger market conditions and business expansion plans. However, confidence remained below the survey’s long-run average.

The RatingDog China General Services PMI declined to 52.1 in November 2025, down from 52.6 in October, but remained above market expectations of 52.0. The latest reading marked the softest expansion in the services sector since June, as new business growth eased. However, new export orders returned to growth amid easing trade uncertainty with the US. Meanwhile, employment continued to decline due to the non-replacement of departing staff and redundancies driven by cost concerns, with backlogs of work rising. Regarding prices, input costs continued to rise, driven by higher raw material prices, office supplies, and fuel costs. However, input price inflation eased slightly, though it remained among the highest levels recorded in just over a year. As a result, firms raised selling prices, albeit only marginally, as they sought to pass higher costs on to customers. Looking ahead, business sentiment weakened to one of the lowest on record.