2026.06.3001:40:35UTC+00China Services Activity Unexpectedly Expands

China’s official NBS Non-Manufacturing PMI inched up to 50.2 in June 2026 from 50.1 in May, beating market expectations for a decline to 49.9 and signalling a tentative stabilisation in the sector. The construction index rose slightly to 49.0, while the services index advanced to 50.4, supported by robust activity in telecommunications, internet software and IT services, financial services, and insurance, all of which remained comfortably above 55.0. By contrast, air transport and real estate stayed in contractionary territory, below the 50 threshold.

New orders showed a notable improvement, climbing to 48.0 from 45.0 in May, indicating firmer demand in both construction (46.3 vs 45.2) and services (48.4 vs 45.3), although both categories continue to contract. On the cost side, input prices declined to 49.7 from 52.2, and sales prices softened to 48.4 from 48.8, pointing to weaker pricing power. Employment edged up to 45.8 from 45.6, signalling a marginal improvement in labour market conditions but remaining in contractionary territory. Meanwhile, the business expectations index rose to 55.3 from 54.8, underscoring an improvement in forward-looking sentiment.