Investing.com -- China’s services sector expanded at a faster pace in April, with the RatingDog China General Services Business Activity Index rising to 52.6 from 52.1 in March, according to PMI data released Wednesday.
The increase in activity was driven by stronger growth in new business, which rose for the fortieth consecutive month.
Service providers attributed the expansion to improvements in market conditions, business innovation, new project development, product launches and promotional activities.
Domestic markets remained the primary driver of demand in the services sector. New export business declined for the second month, though the rate of reduction was marginal and slower than in March.
Business confidence regarding activity over the coming year strengthened, with sentiment among the highest registered over the past year. Companies anticipated growth from new projects, enterprise development, expanding markets, improved business efficiency and successful promotions.
Outstanding workloads increased for the twelfth time in the past 13 months, though the rate of growth remained marginal. Employment fell for the third month, albeit marginally, as companies cited retirements, resignations and cost-saving measures.
Input prices continued to rise, with the rate of inflation reaching the highest level in 2026 so far. Survey respondents linked higher costs to rising oil and fuel prices due to the war in the Middle East. Despite this, cost pressures remained modest overall and below the long-term survey trend.
Service providers reduced their charges for the fourth time in the past five months, with average selling prices decreasing marginally as companies sought to maintain competitiveness.
The Composite Output Index rose to 53.1 from 51.5 in March, indicating the second-fastest rate of expansion since May 2024, as both manufacturing and services sectors contributed to stronger business activity growth.
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