China's services sector recorded its fastest growth in more than a year in August, driven by a rebound in domestic demand and increased summer tourist bookings, reinforcing optimism about regaining momentum in the world's second-largest economy.
The S&P Global/Rating Dog China Services Purchasing Managers' Index (PMI) rose to 53 in August, up from 52.6 in July, its highest level since May 2024, and beating expectations of 52.4.
The survey showed new business volumes rose at the fastest pace since May 2024, driven by improved market confidence and a rebound in external demand. The new export orders index also rose at the fastest rate since last February, supported by improved tourism flows.
The composite PMI, which covers both the manufacturing and services sectors, rose to 51.9 in August from 50.8 in July, the fastest pace of economic activity since November. A reading above 50 indicates growth.
The Rating Dog Index is considered a more accurate measure of smaller, export-oriented service providers along China's east coast, while the official PMI primarily tracks large and medium-sized companies, including state-owned enterprises
