May 2026 RatingDog China services PMI rose to 54.4 from 52.6 in April, up 1.8
pts and marking the 41st consecutive month in expansion; the pace of expansion
was the fastest in three months. New business accelerated to a three-month high,
led by domestic demand; new export orders returned to expansion after two months
of contraction. Firms’ 12-month activity expectations were the strongest since
February. Input-cost inflation climbed to a near 19-month high but remained
below the long-run trend; providers largely absorbed higher costs and selling
prices stayed broadly stable. Employment returned to expansion after three
months of modest decline. Overall, May saw stronger services-sector expansion
with gains in new orders, exports, employment and business confidence, while
controllable cost pressure and stable pricing support continued domestic demand
recovery.
