China’s services activity gathered pace in August as stronger domestic demand helped private-sector firms increase hiring for a fourth consecutive month, according to a survey released on Thursday.
The RatingDog China General Services PMI rose to 51.4 from 50.4 in July, remaining above the 50-point threshold that separates expansion from contraction. Despite the improvement, the latest reading was the second-lowest recorded in 14 months.
New business growth accelerated after reaching a four-month low in July, with the survey indicating that Chinese customers provided most of the momentum. Growth in new export business slowed during the month.
Private survey points to firmer domestic demand
Service-sector employment increased for a fourth successive month, the longest uninterrupted period of job creation since 2023. Firms also reported greater confidence about the year ahead, citing expansion plans, new projects, promotional activity and expectations of stronger demand.
The private-sector figures presented a more positive picture than China’s official survey, which indicated that weak domestic demand had continued to weigh on services activity despite the traditional summer travel peak.
Differences in the two surveys’ coverage and sampling methods are likely to account for the contrasting results. The RatingDog measure is compiled from responses by private businesses, while official data cover a different mix of companies and industries.
Cost pressures remained a concern for service providers. Input prices rose for an 18th consecutive month, with businesses reporting higher labour, material, fuel and equipment-replacement costs.
The broader RatingDog China General Composite PMI, which combines manufacturing and services, climbed to 52.1 in August from 50.8 in July, pointing to faster growth across China’s private sector.
