China Services PMI Hits Three-Month High of 51.6 in September on Stronger New Orders

China's services activity expanded at its fastest pace in three months in September, with the RatingDog China General Services PMI rising to 51.6 from 51.4 in August, remaining above the 50 threshold separating growth from contraction. New business grew at its quickest rate since June, supported by improving demand and client-base expansion efforts, while new export orders accelerated from the prior month. Employment rose for a fifth consecutive month, though the hiring pace eased to a four-month low. Input costs increased at a slower rate than in August, while output prices declined for the first time in four months — the sharpest drop since April 2022. Business confidence strengthened, with firms citing hopes of firmer market conditions, expansion plans and new project wins. The RatingDog China General Composite PMI, covering manufacturing and services, rose to 52.4 from 52.1 in August.