China Services PMI Rises to 51.4 August

China Services PMI Rises to 51.4 August

The RatingDog Services Purchasing Managers' Index (PMI) for China’s services sector increased to 51.4 in August, up from 50.4 in July and surpassing the market forecast of 50.6. The index remained above the 50 threshold that separates expansion from contraction, although the reading was the second‑lowest level recorded in the past 14 months, indicating a still moderate pace of growth.

New business activity extended its expansion streak to a 44th consecutive month, with the rate of growth accelerating after a four‑month low in July. Export‑related new orders also rose for a fourth month, although the pace of growth in export business slowed compared with July.

Employment in the services sector rose for a fourth straight month, representing the longest period of job creation since 2023, signalling a gradual strengthening of domestic demand.

Cost pressures continued to edge higher: input‑price inflation persisted for an 18th consecutive month, while service providers increased output charges for the third month in a row. Both price increases were described as marginal.

The official Chinese services PMI, compiled by the National Bureau of Statistics, stayed at 49.3 in August, unchanged from July and remaining below the 50 growth line, highlighting a divergence between the private‑sector RatingDog survey and the government‑reported figure.