BEIJING (dpa-AFX) - China's services activity expanded at the fastest pace in more than a year in July on rising inflows of new business, purchasing managers' survey data from S&P Global showed on Tuesday.
The headline general services business activity index rose to 52.6 in July from 50.6 in June. The index extended the current period of growth to just over two-and-a-half years. Moreover, the index suggested that the rate of growth in the service sector was the fastest since May 2024.
New business logged its fastest growth in July with firms linking the upturn to an improvement in underlying demand and business development efforts. Moreover, external demand picked up for the first time in three months.
There was a fresh round of increase in job creation. Amid rising new work, business confidence hit the highest in four months, driven by hopes that better economic conditions and improved global trade flows will support new sales.
Regarding prices, average input costs increased due to rising raw material, fuel and salary expenses in July. Consequently, service providers raised their output charges.
'Overall, the service sector fared better in July, which contrasted with the slowing trend seen for manufacturing,' S&P Global Market Intelligence Economics Associate Director Jingyi Pan said.
The composite output index posted 50.8 in July, down from 51.3 in June. Growth was limited to the service sector, as manufacturing production declined at the start of the third quarter.
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