The RatingDog China General Services PMI declined to 54.1 in June 2026 from May’s three-month high of 54.4. However, the latest reading exceeded market forecasts of 53.0 and pointed to the third-steepest increase in services activity in nearly three years, supported by domestic demand. Meanwhile, new export business expanded for the second consecutive month and at the fastest pace since October 2024. Employment increased for the second consecutive month, marking the first back-to-back increase since 2024 and the fastest rise since July 2024. On the price front, input costs rose due to higher labour, raw material, and transportation costs. However, input cost inflation eased from May’s 19-month high. Meanwhile, output cost inflation accelerated for the first time in four months, the highest level in more than two years. Looking ahead, business sentiment remained positive and broadly comparable to that seen in May.

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