China’s services sector showed slightly stronger momentum in January, supported by an increase in new business and a modest rebound in overseas demand, according to a private survey released on Wednesday.
The RatingDog Services PMI climbed to 52.3 in January, beating expectations for an unchanged reading of 52.0. The result marked the fastest pace of expansion in three months and remained comfortably above the 50 level that separates growth from contraction.
Survey participants reported a pickup in new orders, driven by promotional efforts, improving client demand, and a renewed rise in export-related business. New export orders returned to expansion after slipping into contraction territory in December.
Price pressures showed signs of easing at the start of the year. While input costs continued to rise due to higher fuel prices and purchased goods, the pace of inflation slowed to a five-month low. Output prices, meanwhile, remained largely stable.
Despite the improvement in activity, overall business confidence edged lower, as companies cited ongoing uncertainty surrounding the global economic outlook.
“Overall, the service sector started the year on a stable footing,” said Yao Yu, founder of RatingDog.
Looking ahead, Yao noted that consumption-focused services such as culture and tourism, catering, and instant retail could see stronger growth in February, supported by the extended nine-day Spring Festival holiday. In contrast, producer services are expected to experience a seasonal slowdown due to factory shutdowns during the holiday period.
