China Services Growth Near 2-Year Low

The RatingDog China General Services PMI declined to 50.4 in July 2026 from 54.1 in June, falling below market forecasts of 53.7. It was the slowest expansion in services activity since September 2024 as new business growth moderated for the second straight month, easing to a four-month low amid softer domestic demand. However, new export orders rose for the third consecutive month, supported by stronger overseas demand. Employment rose for the third consecutive month, though at a slower pace than in June. On the price front, input costs increased due to higher labour, raw material, advertising, and diesel costs. However, input cost inflation eased to a six-month low. Meanwhile, output prices continued to rise, marking the first back-to-back increases in the sector in a year and a half, driven by higher operating expenses, oil prices, and insurance premium changes. Finally, business sentiment fell to its lowest level since February 2020.




