According to published data reports, activity in China's services sector in August recorded the fastest growth in more than a year.
According to the survey, the positive growth for the world's second-largest economy was driven by a surge in summer demand and an increase in tourism activities.
RatingDog's services PMI data reading rose to 53.0 points in August, from 52.6 in July. The figure, which also beat the forecast of 52.4 points, is the highest since May 2024.
According to Yao Yu, founder of RatingDog Shenzhen Information Technology Co., the increase reflects a recovery in demand, but pressure on companies' profits remains high.
China's services sector faces challenges in passing input costs to selling prices, causing profit margins to remain tight since November 2023.
New activity also jumped at the fastest pace since May 2024, driven by a surplus of orders and improving market conditions.
However, the number of employees fell as companies chose not to replace employees who left their jobs due to cost pressures.
The overall economic situation has yet to fully recover, with the pressure of the housing market downturn also affecting economic activity.
