BEIJING — China's services sector expanded at a faster pace in August, according to a private-sector survey published Thursday. The RatingDog China General Services Purchasing Managers' Index climbed to 51.4 from 50.4 in July, remaining above the 50-point threshold that separates expansion from contraction.
The August reading marked the second-lowest PMI in 14 months.
Domestic demand drove the acceleration. New business orders increased at a faster rate than in July, which had recorded a four-month low.
Services firms added staff for the fourth consecutive month, the longest stretch of continuous hiring since 2023.
The private survey's findings diverged from an official government survey released Monday. Analysts attributed the difference to sampling methods and coverage gaps between the two surveys.
While domestic demand strengthened, export orders grew more slowly. Input prices rose for the 18th consecutive month, with firms reporting higher expenses for labor, materials, fuel and equipment.
Business confidence improved from July. Firms cited expansion plans, new projects and expectations for stronger market demand.
The RatingDog China General Composite PMI, which covers both manufacturing and services, rose to 52.1 from 50.8 in July. The sustained hiring and firmer domestic demand underpinned the broader improvement, though export momentum remained soft.
