China’s private services sector activity expanded at a faster pace in August, with the RatingDog China Services Purchasing Managers’ Index (PMI) rising to 51.4 from 50.4 in July, according to data released on Wednesday.
The reading remained above the 50-point threshold that separates growth from contraction, though it marked the second-lowest level in 14 months. The broader RatingDog Composite PMI, which covers both manufacturing and services, increased to 52.1 in August from 50.8 in July, indicating faster growth across the private sector.
Employment in the services sector expanded for the fourth consecutive month, the longest streak of job creation since 2023. New business activity accelerated after a four-month low in July, primarily supported by domestic demand, while export-related new orders grew at a slower pace. Input costs rose for the 18th straight month, with companies citing higher expenses for labor, materials, fuel, and equipment replacement.
Business confidence improved compared to July, as firms cited expansion plans, new projects, and promotional activities as key drivers. The latest data contrasts with an official survey released earlier this week, which analysts attributed to differences in coverage and sampling methods, with the official survey highlighting weak domestic demand despite peak summer travel activity.
