Key facts
- China's services activity expanded at a slower pace in June, with the RatingDog China General Services Purchasing Managers' Index falling to 54.1 from 54.4 in May.
- Growth in new business eased, but new export business increased at the fastest pace since October 2024.
- Companies raised selling prices for the first time in four months, while input cost inflation slowed.
- Service providers added jobs at a faster pace due to improving demand.
- Business confidence for the upcoming year remained positive but softened.
China's services sector activity saw a slight slowdown in June, according to a private survey by S&P Global. The RatingDog China General Services Purchasing Managers' Index (PMI) decreased to 54.1 from 54.4 in May, remaining in expansionary territory above the 50-point threshold. This contrasts with a slightly higher reading in the official survey released earlier in the week.
While growth in new business eased, a significant increase in new export orders, the fastest in 20 months, provided support. Companies also began raising their selling prices for the first time in four months, at the quickest rate in over two years, despite a moderation in input cost inflation. The employment sub-index indicated a faster pace of job additions by service providers in response to demand.
Business confidence regarding activity over the next year remained positive, although optimism showed a slight softening. The Composite Output Index, which combines services and manufacturing, also eased to 53.6 in June from 54.0 in May.