China services growth hits three-month high, private PMI shows

In September, China's services sector experienced its strongest growth in three months, according to a private-sector survey. The RatingDog China General Services PMI climbed to 51.6 from 51.4 in the previous month, indicating expansion rather than contraction. New business activity surged at its fastest rate since June, driven by improved demand and firms' efforts to broaden their customer base.

Export orders also increased more rapidly than in the prior month. Employment rose for the fifth consecutive month as companies hired more workers to handle heavier workloads, although hiring slowed to a four-month low. Input costs increased at a slower pace compared to August, while output prices dropped for the first time in four months, marking the steepest decline since April 2022.

Business confidence improved from the previous month, with companies optimistic about stronger market conditions, expansion plans, and new project wins. The RatingDog China General Composite PMI, which includes both manufacturing and services, rose to 52.4 from 52.1 in August.