China services activity quickens on stronger domestic demand, private PMI shows
FXI•Private survey shows faster services growth in August
BEIJING, Sept 3 (Reuters) - China's services activity expanded at a faster pace in August, a private-sector survey showed on Thursday, with stronger domestic demand helping firms add staff for a fourth consecutive month.
The RatingDog China General Services PMI rose to 51.4 in August from 50.4 in July, remaining above the 50-point mark that separates growth from contraction. However, it was still the second-lowest reading in 14 months.
The reading was in contrast with the official survey on Monday, as analysts said sluggish domestic demand weighed on services activity despite the summer travel peak. The divergence likely reflects differences in the two surveys' coverage and sampling methods.
Survey details show stronger orders, hiring and confidence
According to the RatingDog survey:
- New business increased at a faster pace after hitting a four-month low in July. Domestic demand was the main driver, as new export business grew at a slower rate.
- Service-sector employment rose for a fourth consecutive month, marking the longest stretch of job creation since 2023.
- Input prices rose for an 18th consecutive month. Firms cited higher labour, materials, fuel and equipment-replacement costs.
- Business confidence over the coming year improved from July, supported by plans for expansion, new projects, promotions and expectations of stronger market demand.
- The RatingDog China General Composite PMI, covering manufacturing and services, rose to 52.1 in August from 50.8 in July, indicating faster growth in overall private-sector activity.
