China Services PMI Beats Forecasts

The RatingDog China General Services PMI eased to 52.1 in March 2026 from a near three-year high of 56.7 in February, below the expected 53.7, and marking the slowest services expansion in three months. New business grew at its weakest pace since April 2025, with domestic markets remaining a key driver of demand. International new business also dipped slightly after strong growth in the first two months of the year. Despite slower new business growth, outstanding work continued to rise on February’s strong demand. Firms reduced staffing at the fastest pace in six months, though overall job cuts remained modest. Average input prices rose marginally due to higher fuel, raw materials, and labor costs, alongside promotional activities, allowing services firms to lower charges to support sales. Business confidence stayed positive, underpinned by expectations of improved market conditions and expansion plans.

The RatingDog China General Services PMI surged to 56.7 in February 2026 from 52.3 in January, pointing to the highest reading since May 2023. New orders rose at the strongest pace since May 20244, linked to successful promotional strategies and rising client interest. Also, foreign demand grew the most in a year due to greater tourism interest. Outstanding business accelerated further despite its growth rate being similar to that seen in the prior two months. Service providers reduced their staffing levels, following a slight increase in payroll at the start of the year. Regarding inflation, cost pressures intensified as average input prices rose at a quicker rate, owing to higher wage and energy cost. Selling prices gained for the first time in three months. Although modest, the rate of output price inflation was the highest recorded since May. Looking ahead, business confidence remained elevated, supported by forecasts of improved market conditions and business expansion plans.

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.