China Services Growth Beats Estimates

The RatingDog China General Services PMI edged up to 51.6 in September 2026 from 51.4 in the previous month, beating market expectations of 51.1. It marked the highest since June, supported by the strongest growth in new orders since that month, driven by successful business development efforts and improving demand conditions. Survey data also pointed to stronger external demand, as growth in new export business accelerated for the first time in three months. Employment increased for a fifth consecutive month as firms hired additional staff to cope with rising workloads. On the price front, input costs rose for the nineteenth straight month, largely due to higher labor, raw material, and energy expenses. Meanwhile, output charges increased at the fastest pace in four and a half years. Lastly, sentiment improved in September and matched the highest level recorded so far in 2026, supported by expectations of stronger market conditions, business expansion plans, and new project launches.

The RatingDog China General Services PMI rose to 51.4 in August 2026 recovering from a 22-month low of 50.4 hit in July, and surpassing market forecasts of 50.6. Still, the latest reading was the second-lowest in 14 months. The increase was mainly supported by domestic demand, while foreign sales rose for the fourth straight month, but at a more modest pace than in July. Employment rose for the fourth consecutive month, marking the longest sequence of growth since 2023. On the price front, input cost inflation accelerated due to higher labor, raw material, oil, and diesel costs. Meanwhile, output prices rose for the third month running, marking the longest sequence of inflation in the sector since the first half of 2024. However, selling price inflation was unchanged from July and remained marginal. Lastly, sentiment strengthened amid hopes of business expansion plans, new projects, and expected market growth.

The RatingDog China General Services PMI declined to 50.4 in July 2026 from 54.1 in June, falling below market forecasts of 53.7. It was the slowest expansion in services activity since September 2024 as new business growth moderated for the second straight month, easing to a four-month low amid softer domestic demand. However, new export orders rose for the third consecutive month, supported by stronger overseas demand. Employment rose for the third consecutive month, though at a slower pace than in June. On the price front, input costs increased due to higher labour, raw material, advertising, and diesel costs. However, input cost inflation eased to a six-month low. Meanwhile, output prices continued to rise, marking the first back-to-back increases in the sector in a year and a half, driven by higher operating expenses, oil prices, and insurance premium changes. Finally, business sentiment fell to its lowest level since February 2020.