China services activity unexpectedly grows in April - RatingDog

Services activity in China unexpectedly grew in April, according to a private survey released on Wednesday.

The RatingDog China general services purchasing managers’ index, compiled by S&P Global, rose to 52.6 from 52.1 in March. This was above the 50.0 mark that separates contraction from expansion and above economists’ expectations for a reading of 52.0.

The composite output index printed at 53.1 in April, up from 51.5 the month before and with the rate of expansion the second-fastest since May 2024.

RatingDog founder Yao Yu said: "A breakdown of the sub-indices shows that growth rates for both business activity and new business picked up in April. Total new business increased for the fortieth month in a row, and at the fastest rate since February, predominantly supported by domestic market demand. New export business declined for the second successive month, albeit only fractionally and at a softer pace than in March.

"Price dynamics were mixed. The rate of input cost inflation quickened to the highest so far in 2026, largely linked to rising oil and fuel prices, yet overall pressure remained modest. In this environment, service providers continued to reduce their charges slightly to boost competitiveness, with the selling prices index remaining in contraction territory for the second month running.

"The labour market saw further marginal adjustment, as employment decreased fractionally for the third month in succession. Business confidence regarding activity over the coming year strengthened further, with the degree of optimism among the highest registered over the past year, associated with new projects, market expansion and efficiency gains."