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

BEIJING, Aug. 5 (Reuters) - 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.