China services growth hits slowest since September 2024, private PMI shows

China's services sector in July expanded at its slowest pace since September 2024 as growth in activity and new business moderated, a private business survey showed on Wednesday.

The RatingDog China General Services Purchasing Managers' Index, compiled by S&P Global, fell to 50.4 from 54.1 in June, staying above the 50-mark that separates expansion from contraction.

The reading was better than the official survey result, which showed services activity fell into contractionary territory. 

According to the RatingDog survey:

• The growth pace of new business weakened to its slowest since March, weighed down by softer domestic demand. 
• Services exports grew for the third month running. Anecdotal evidence linked higher overseas client demand to exhibitions, study tours during the summer, increased financial transaction settlements and effective management.
• Firms added staff for a third consecutive month, though at a slower pace than in June. 
• Business sentiment stayed positive but softened to its lowest level since February 2020. 
• The Composite Output Index, which combines manufacturing and services performance, fell to 50.8 from 53.6 in June.

Reuters

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