China Services Growth Beats Forecasts

The RatingDog China General Services PMI declined to 54.1 in June 2026 from May's three-month high of 54.4. However, the latest reading exceeded market forecasts of 53.0 and pointed to the third-steepest increase in services activity in nearly three years, supported by domestic demand. Meanwhile, new export business expanded for the second consecutive month and at the fastest pace since October 2024. Employment increased for the second consecutive month, marking the first back-to-back increase since 2024 and the fastest rise since July 2024. On the price front, input costs rose due to higher labour, raw material, and transportation costs. However, input cost inflation eased from May's 19-month high. Meanwhile, output cost inflation accelerated for the first time in four months, the highest level in more than two years. Looking ahead, business sentiment remained positive and broadly comparable to that seen in May.

The RatingDog China General Services PMI increased to 54.4 in May 2026 from 52.6 in April, surpassing forecasts of 52.3. It marked the strongest growth in the services sector since February, as new orders rose at the fastest pace in three months, while export orders increased following slight declines in the previous two months. However, growth in foreign sales remained softer than domestic demand. Employment increased for the first time in four months, with the pace of job creation exceeding that recorded in January. On prices, input price inflation accelerated to its highest level since October 2024, driven by higher fuel prices and wage costs. Output price inflation was broadly unchanged, with cost pressures increasing but remaining below the long-run survey average. Lastly, sentiment improved to a three-month high, supported by improving market conditions, a brighter economic outlook, business development initiatives, increased client demand, new projects, and new business lines.

The RatingDog China General Services PMI increased to 52.6 in April 2026 from March’s three-month low of 52.1, surpassing market forecasts of 52. New business grew for the fortieth successive month, the second-longest period of continuous expansion in the survey's history, with domestic demand remaining a key driver. Meanwhile, foreign sales fell for the second straight month, although the rate of decline was only marginal and eased compared with March. Employment declined fractionally for the third month in succession. Average input price inflation accelerated to its highest level in 2026 so far, boosted by higher oil prices and fuel costs due to the impact of the war in the Middle East. Meanwhile, selling prices fell for the fourth time in the past five months, albeit marginally. Finally, business confidence was among the highest recorded over the past year, supported by new projects, market expansion, and efficiency gains.