The sector’s expansion slowed to its lowest pace in nearly two years last month, but robust growth was recorded in the first half-year.
China’s services sector sees first-half growth despite July moderation
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Data released by the Ministry of Commerce on Tuesday showed that China’s services sector expanded by 8.3 percent year on year during the first half of 2026. The total value of service imports and exports reached 3.78 trillion yuan (US$556.56 billion) from January to June, People’s Daily reports.
Performance was highlighted by a 31.1 percent surge in travel service exports, which grew faster than any other major category in China’s services sector, reaching 229.2 billion yuan. Knowledge-intensive services also performed well, rising 6.7 percent to 1.66 trillion yuan and accounting for 44 percent of total trade.
Within this segment, exports related to personal cultural and entertainment services and intellectual property charges saw significant growth, up 57.2 percent and 44.3 percent respectively. Additionally, imports of transport services climbed 30.4 percent to 498.1 billion yuan.
China’s services sector: easing in July
Fresh figures suggest a cooling in July, however. A private business survey published on Wednesday revealed that China’s services sector expanded at its slowest pace since September 2024.
The RatingDog China General Services Purchasing Managers’ Index, compiled by S&P Global, fell to 50.4 in July from 54.1 in June. Although the reading remains above the 50-mark threshold that separates expansion from contraction, it stands in contrast to official survey results, which indicated that activity in China’s services sector had fallen into contractionary territory, Reuters reports.
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The RatingDog survey noted that growth in new business weakened to its slowest pace since March, largely driven by softer domestic demand. However, services exports continued to grow for the third consecutive month, bolstered by demand for exhibitions, study tours, and financial transaction settlements.
While firms continued to increase their headcount, they did so at a slower pace than in June. Business sentiment also softened, reaching its lowest level since February 2020, while the Composite Output Index, which captures both manufacturing and services performance, fell to 50.8 from 53.6 in June.
