China’s services activity expanded at a faster pace in April, with the RatingDog
services PMI rising to 52.6 from 52.1 in March, above the 52 median forecast and
the 50 expansion threshold. The data contrasted with the official PMI, which
showed contraction in services due to weakness in sectors such as wholesale and
retail trade. Rising energy costs linked to the Iran war are adding price
pressures, though authorities are adjusting fuel price caps to limit the impact.
Domestic consumption remains subdued, with March retail sales growth slowing to
1.7% from 2.8% earlier, even as services consumption continues to outpace goods.
