China’s service sector expansion eased slightly in October, with the RatingDog PMI Services slipping from 52.9 to 52.6, in line with expectations. Composite PMI also moderated to 51.8 from 52.5. While domestic demand improved, weakness in overseas orders capped momentum, reflecting the impact of renewed global trade instability on China’s external-facing industries.
RatingDog founder Yao Yu said new export business “fell noticeably into contractionary territory” amid “increased instability in the global trade environment”. However, total new orders still expanded as domestic demand strengthened. Business expectations remained high even though confidence edged slightly lower. Employment stayed in contraction, but the pace of job losses eased.
Price pressures were uneven. Input costs rose for an eighth consecutive month, reaching their highest level since October 2024. On the other hand, output prices slipped back into contraction, implying margin compression for service providers.
