Economic Buzz: China services PMI stays strong in June as firms raise prices
The headline RatingDog China General Services Business Activity Index stood at 54.1 in June, slightly lower than 54.4 in May but still well above the 50.0 no-change mark. The reading signalled the third-strongest expansion in services activity in nearly three years, with the current growth streak continuing since January 2023.
New business increased for the thirteenth consecutive month, supported by stronger client demand, new customer acquisitions, project wins and business development efforts. Export business also expanded for a second straight month at the fastest pace since October 2024. Backlogs rose for the eighth month in a row, while employment increased for the second consecutive month, with hiring growing at its fastest rate since July 2024.
Companies remained optimistic about the year ahead, citing expansion plans, improving market conditions and new product launches.
Businesses raised their selling prices for the first time in four months and at the fastest pace since May 2024 as pricing power improved. Although input costs continued to increase because of higher labour, materials and transport expenses, overall cost inflation eased from May?s 19-month high.
The Composite Output Index eased to 53.6 in June from 54.0 in May, indicating another broad-based expansion across manufacturing and services.
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