FX.co ★ China Services Growth Beats Forecasts

The RatingDog China General Services PMI slipped to 54.1 in June 2026 from May’s three‑month high of 54.4. Despite the modest decline, the reading beat market expectations of 53.0, underpinned by continued growth in new orders. Although the pace of expansion in new business slowed slightly, it remained above the average seen during the current upturn.

External demand played a key role, with new export business rising for a second straight month and at its fastest rate since October 2024. Employment also improved for the second consecutive month, marking the first back‑to‑back gain in staffing levels since 2024 and the strongest increase since July 2024.

On the cost side, input prices rose further, driven by higher labour, raw material, and transportation costs. Even so, input cost inflation moderated from May’s 19‑month peak. In contrast, output charge inflation accelerated, reaching its highest level in more than two years.