China’s services sector remained in expansion in October, but the RatingDog gauge slowed to its lowest level since July, pointing to weaker momentum even as activity continued to grow, Reuters reported.
Reuters put the RatingDog China General Services PMI, compiled by S&P Global, at 50.8, down from 51.6 in September. Under S&P Global’s methodology, a reading above 50 indicates that activity increased compared with the previous month.
Incoming business advanced at roughly September’s pace, Reuters reported. Orders from outside China posted a sixth monthly gain, their longest run of increases since 2024. Service providers also added employees for a sixth straight month, and hiring picked up pace, the outlet said.
Pending work declined for the first time in 12 months. Reuters and Investing.com attributed part of the decrease to efficiency improvements involving artificial intelligence.
Rising expenses put pressure on service companies: increases in material, fuel and wage costs pushed input-cost inflation to a five-month high. Firms cut average prices for a second month amid competition, while business confidence fell to its lowest level since July, Reuters reported.
A broader measure covering manufacturing and services also showed slower growth. Investing.com reported that the composite output index slipped to 52.0 from 52.4, remaining above the 50 mark.
S&P Global describes its services measure as a seasonally adjusted index based on surveyed changes in activity. Its published methodology says readings above 50 signal an increase from the prior month and cautions that the services measure is not directly comparable with the headline manufacturing PMI. The methodology describes a panel of around 650 service-sector companies.
The services reading complements EconoTimes’ earlier coverage of RatingDog’s October manufacturing survey, which tracks factory activity separately.
