Beijing (Reuters) - China’s private-sector services purchasing managers' index (PMI) rose to 51.4 in August, up from 50.4 in July, according to data from RatingDog. The reading kept the index above the 50-point threshold that separates growth from contraction and marked the second‑lowest level in the past 14 months.
The composite PMI, which combines manufacturing and services, also improved, climbing to 52.1 from 50.8 in July. The faster pace of services activity was driven by stronger domestic demand, allowing firms to hire for a fourth consecutive month – the longest streak of job creation in the sector since 2023.
New business volumes increased after a four‑month low in July, with the rebound coming mainly from domestic orders. Export‑related new business grew more slowly. Input prices rose for the 18th month in a row, as companies faced higher labour, material, fuel and equipment‑replacement costs.
Business confidence for the coming year improved from July, reflected in plans for expansion, new projects and promotions. The private survey’s upbeat picture contrasted with an official government PMI released earlier in the week, which showed weaker domestic demand weighing on services despite a summer travel peak. The divergence is attributed to differences in coverage and sampling between the two surveys.
