FX.co ★ China Services Growth Beats Estimates

The RatingDog China General Services PMI climbed to 51.4 in August 2026 from 50.4 in July, exceeding market expectations of 50.6. Although this signaled an acceleration from July, it still represented the second-weakest expansion in 14 months and the softest pace since September 2024.

Growth was driven primarily by domestic demand. Foreign new business increased for the fourth consecutive month, but the expansion in external sales was more subdued than in July. Employment also rose for the fourth straight month, marking the longest run of job creation since 2023.

On the price front, input cost inflation picked up, reflecting higher labor, raw material, oil, and diesel costs. Output charges increased for a third successive month, the longest stretch of output price inflation in the sector since the first half of 2024. However, the rate of selling price inflation was unchanged from July and remained only marginal.