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China service growth cools as General Services PMI falls to 50.4
The composite output index slid to a one-year low of 50.8, while services export growth held up with new export business at 52.0.
China’s services momentum slowed sharply in July, with the RatingDog China General Services PMI survey showing the Business Activity Index at 50.4, down from 54.1 in June. The reading marks the weakest pace since September 2024, still above 50.0 but indicating a cooling in domestic services expansion.
The broader composite output index eased to 50.8, its lowest level in a year, suggesting the slowdown is not limited to services alone, with manufacturing also losing momentum. RatingDog pointed to input cost and output price inflation easing to multi month lows, even as employment continued its longest growth streak since 2023.
Export related activity offered some offset, with services new export business at 52.0 for a third consecutive month of growth. The survey cited stronger overseas client demand, linked to activities such as exhibitions, study tours, and increased settlement business, even as total new business rose for a 43rd straight month but at its slowest pace since March.