China S&P Services PMI July 2025: 52.6, highest since May 2024
- expected 50.2, prior 50.6
Composite: 50.8
Services PMI improvement was driven by stronger domestic demand and a pickup in new export orders, particularly from tourism and stabilised trade conditions. This contrasts with the official PMI, which held flat at 50.0, and tends to reflect trends among larger state-owned firms, whereas the S&P survey captures smaller, export-driven businesses, especially along the eastern coast.
Despite this strength in services, the S&P Composite PMI, which includes manufacturing, dipped to 50.8, reflecting mixed performance across sectors.
The rise in activity supported faster hiring, with employment in the services sector growing at the quickest pace since July 2024. Cost pressures remained elevated—due to rising input costs for raw materials, fuel, and wages—prompting firms to raise selling prices for the first time in six months.
The report also noted improved business confidence, helped in part by the recent U.S.-China agreement to extend their 90-day tariff truce, following constructive trade talks in Stockholm.
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Earlier this month we’ve had the official PMIs from China:
and the S&P Manufacturing PMI:
