China services activity quickens on stronger domestic demand, private PMI shows

BEIJING, Sept 3 (Reuters) - ‌China's services activity ​expanded ​at a faster pace in August, a private-sector survey showed on Thursday, with stronger domestic ‌demand helping firms add staff for a fourth ⁠consecutive month.

The RatingDog China General Services PMI rose to 51.4 in ‌August from 50.4 in July, ‌remaining above the 50-point mark that separates growth from contraction. However, it was still the second-lowest reading ​in 14 months.

The reading was in contrast with the official survey on Monday, as analysts said sluggish domestic ⁠demand weighed on services activity despite the summer travel peak. The divergence ​likely reflects differences in the two surveys' coverage and sampling methods.

According to the RatingDog survey:

• New ​business increased at a faster ‌pace after hitting a four-month low in July. Domestic demand was the main driver, as ⁠new export business grew at a slower rate.

• Service-sector employment rose for a fourth consecutive month, marking the longest stretch ⁠of job creation since 2023.

• Input prices rose for an 18th ​consecutive month. Firms cited higher labour, materials, fuel and equipment-replacement costs.

• Business confidence over the coming year improved from July, supported by ‌plans for expansion, new projects, promotions and expectations of stronger market demand.

• The RatingDog ‌China General Composite PMI, covering manufacturing and services, rose to ⁠52.1 in August from ‌50.8 in July, ​indicating faster growth in overall private-sector activity.

(Reporting by Ellen Zhang and Ryan Woo; Editing by Jacqueline ‌Wong)

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