China’s services sector gained fresh momentum in August, with the RatingDog PMI rising to 53.0 from 52.6, topping expectations of 52.5 and marking the highest level since May 2024. The composite index also improved, climbing to 51.9 from 50.8.
RatingDog founder Yao Yu highlighted that new business inflows surged to the highest since May of last year, while new export orders expanded at the fastest pace since February. More stable domestic demand and a recovery in foreign demand were key drivers, with service providers also reporting stronger optimism—the highest since March.
Price trends, however, remained challenging. Input costs rose modestly but firms were unable to fully pass them on, with output prices slipping back into contraction. That indicates profit margins have been under sustained pressure since late 2023.
