China Service Sector Logs Robust Growth

(RTTNews) - China's service sector continued to expand in June as new work posted strong growth, while cost pressures eased since May, survey data from S&P Global showed Friday.

The headline RatingDog services Purchasing Managers' Index fell to 54.1 in June from 54.4 in the previous month. The reading was expected to decline to 53.0.

Although the index dropped from May, the score suggested the third-steepest rise in services activity for nearly three years. The current sequence of expansion began in January 2023.

Higher activity in June was attributed to increased new business, stronger client demand, and the acquisition of new clients and the successful development of projects.

New business volumes increased in June, continuing the current sequence of growth that began in January 2023. Services exports grew at the fastest pace since October 2024.

Employment in the service sector grew for the second straight month, marking the first back-to-back increase since 2024.

Service providers continued to hold optimistic forecasts for growth over the coming twelve months in June.

With new business intakes rising firmly, service providers raised their charges to boost revenues and profits. This marked the first rise since February and the rate of inflation hit the strongest since May 2024.

Input prices also increased in June but the rate of inflation eased from May's 19-month high.

The survey showed that the composite output index eased to 53.6 in June from 54.0 in May, signaling another solid expansion in business activity in China.

The latest growth in the private sector was among the fastest in three years and remained broad-based across manufacturing and services.