October RatingDog China services business activity index fell to 50.8, down 0.8
points from September and the slowest expansion in three months, though still
above the 50 expansion threshold as Q4 begins. Business activity continued to
expand but at a slower pace, with capacity constraints cited. New business
remained robust and roughly stable versus September. New export orders rose for
a sixth consecutive month — the longest growth streak since 2024 — but the pace
moderated. Input costs rose at the fastest rate in five months. Selling prices
fell for a second month amid intense competition, though the decline eased
versus September. Overall: services expansion persists but is cooling; external
demand is improving, while rising costs plus renewed price cuts are compressing
corporate margins.
