Key Facts
• On August 5, S&P Global released China’s July Services PMI at 52.6.
• The index rose from June’s 50.6, marking a 14-month high since May 2024.
• PMI above 50 indicates economic expansion; below 50 signals contraction.
• Growth driven by increased demand, including a rise in new export orders.
• New business activity reached its highest level in a year.
• Export orders grew for the first time in three months, supported by tourism and stable trade.
• Employment expanded at its fastest pace since July 2024, reversing June’s decline.
• Backlogs of work increased at a slower pace due to higher workforce capacity.
• Input costs, including raw materials, fuel, and wages, continued to rise.
• Selling prices increased for the first time in six months.
• Composite PMI, combining services and manufacturing, fell to 50.8 from June’s 51.3.
• Caixin ceased sponsoring S&P Global China PMI reports starting July 2025.
Summary
China’s Services PMI, released by S&P Global on August 5, climbed to 52.6 in July, up from 50.6 in June, marking its highest level in 14 months. The index’s growth was fueled by increased demand, including a rise in new export orders, supported by tourism and stable trade conditions. Employment expanded at its fastest pace since July 2024, while backlogs of work grew more slowly. Input costs and selling prices both rose, reflecting higher expenses for raw materials, fuel, and wages. However, the Composite PMI, which includes manufacturing, declined to 50.8 from 51.3 in June. This report highlights a mixed economic outlook, with robust service sector growth offset by weaker manufacturing performance.
