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By Liangping Gao and Ryan Woo<\/p>\n
BEIJING, May 6 (Reuters) – China’s services activity expanded at a faster pace in April, helped by stronger growth \u200cin new business, although overseas demand continued to decline, a private-sector \u200csurvey showed on Wednesday.<\/p>\n
The RatingDog China General Services purchasing managers’ index, compiled by S&P Global, rose \u200bto 52.6 in April from 52.1 in March, staying above the 50-mark that separates expansion from contraction.<\/p>\n
The reading contrasted with an official survey released last week, which showed services activity slipping back into contraction after expanding the previous month. The two \u200csurveys cover different samples.<\/p>\n
China’s export \u2060engine has shown signs of strain, while retail sales and industrial output have cooled. Producer prices have also emerged from a \u2060years-long deflationary stretch, a shift analysts say could squeeze companies already facing higher costs and limited pricing power amid weak demand.<\/p>\n
External risks are adding to the pressure. The \u200bwar \u200bin the Middle East has heightened uncertainty \u200bover global demand and supply chains, \u200cthreatening to further erode margins for Chinese firms grappling with soft orders and cautious spending by households and businesses.<\/p>\n
New business rose at a faster pace in April, driven mainly by domestic demand. New export business declined for a second straight month, though only marginally.<\/p>\n
Service providers cut staffing levels for a third consecutive month, \u200cciting retirement, resignations and cost-saving measures. Outstanding \u200bbusiness remained in expansion territory, continuing a trend \u200bseen since October 2025.<\/p>\n
Input cost \u200binflation accelerated to its highest so far this year, with \u200cfirms pointing to firmer oil, fuel and \u200bfreight costs from \u200bthe Middle East conflict. Companies reduced their selling prices for a second month to help attract and retain clients.<\/p>\n
Business confidence about activity over the \u200bcoming year remained positive in \u200cApril.<\/p>\n
The Composite Output Index rose to 53.1 in April from 51.5 \u200bin March, remaining above the 50.0 no-change threshold.<\/p>\n
(Reporting by Liangping Gao \u200band Ryan Woo; ; Editing by Jacqueline Wong)<\/p>\n<\/p><\/div>\n