China’s services activity expanded at its slowest pace in five months in November, as growth in new orders softened despite a boost from foreign demand, according to a private survey released on Wednesday.
The RatingDog Composite PMI fell to 51.2 in Nov-25 (Oct-25: 51.8), remaining at the lowest reading since Jul-25, though it still marked the sixth straight month of private-sector expansion. The moderation was driven by flat manufacturing output (49.9) and a softer expansion in services activity (52.1).
The services sector posted the slowest expansion since Jun-25, weighed down by softer growth in new business. New export orders, however, returned to growth as trade uncertainty with the US eased. However, employment continued to fall, reflecting the non-replacement of departing staff and cost-driven redundancies, while backlogs of work increased. On prices, input costs continued to rise, led by higher raw material, office supply, and fuel expenses, though the pace of input inflation moderated slightly and remained near the highest levels in over a year.
In response, firms raised selling prices only marginally as they sought to pass on higher costs to customers. Going forward, business sentiment in the services sector weakened to one of the lowest on record. The weaker data highlight sluggish consumer demand, adding pressure to China’s slowing economy, which grew +4.8%yoy in 3QCY25 (2QCY25: +5.2%yoy), its softest pace since 3QCY24. Policymakers are likely to focus on boosting consumption, though no major new stimulus has been introduced yet.
MBSB Research noted that targeted policy measures, stronger consumption indicators, and increased credit support will be crucial amid China’s ongoing real estate weakness and a sluggish labour market.
