China Services Growth at Near 3-Year High

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.

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.