Today’s RatingDog services beat completes the week’s China data set and reinforces the pattern already seen in the manufacturing PMIs, private and export oriented surveys running hotter than the state weighted official readings. This divergence is worth tracking rather than resolving in either direction, since it likely reflects genuine differences in panel composition, private surveys skew toward smaller, more externally exposed firms, rather than one series being right and the other wrong. For AUD, a China proxy currency through the iron ore and broader commodity trade, the composite print hitting 52.1 is supportive at the margin, offering some offset to Monday’s softer official non-manufacturing read and reinforcing the case that underlying private sector activity in China is holding up better than headline official data suggests. That said, the RatingDog release itself flagged slowing export new business as one of two areas warranting attention, alongside a modest pickup in cost pressures, so this is a constructive but incremental input for AUD rather than a standalone catalyst, and unlikely to be a major driver on its own given the divergence with the official data still needs resolving over coming months.
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Earlier:
Economic and event calendar in Asia Thursday, September 3, 2026 – another China PMI
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Summary:
The RatingDog China General Services PMI rose to 51.4 in August from 50.4 in July, remaining above the 50 mark that separates growth from contraction, though still the second lowest reading in 14 months.New business increased at a faster pace after hitting a four month low in July, driven mainly by stronger domestic demand as export new business growth slowed.Service sector employment rose for a fourth consecutive month, the longest stretch of job creation since 2023, with RatingDog noting it was one of the strongest rates of employment growth in three years.Input prices rose for an eighteenth consecutive month, linked to higher labour, materials, fuel and equipment costs, while output charges rose for a third straight month at an unchanged, marginal pace.Business confidence over the coming 12 months improved from July’s recent low, supported by expansion plans, new projects, promotions and expected market growth.The RatingDog China Composite PMI, covering manufacturing and services, rose to 52.1 in August from 50.8 in July, with both sectors posting faster growth in output and new business.The reading contrasts with Monday’s official NBS survey, where analysts said sluggish domestic demand weighed on services activity despite the summer travel peak, with the divergence likely reflecting differences in survey coverage and sampling.This week’s full China PMI set now shows the official Manufacturing PMI at 49.8 and Non-Manufacturing PMI at 49.0 released Monday, against the private RatingDog Manufacturing PMI at 51.5 released Tuesday and today’s Services print at 51.4, a consistent pattern of private surveys outperforming official ones across the week.
China’s services activity expanded at a faster pace in August, a private sector survey showed on Thursday, with stronger domestic demand helping firms add staff for a fourth consecutive month and completing a week of Chinese PMI data that has consistently shown private surveys outperforming their official counterparts.
The RatingDog China General Services PMI rose to 51.4 in August from 50.4 in July, remaining above the 50 point threshold that separates expansion from contraction. Even so, RatingDog founder Yao Yu noted the reading was still the second lowest in 14 months, describing the pickup as a modest rebound following July’s weakest outturn since September 2024. New business rose for a forty fourth consecutive month, with the pace of growth quickening from July’s four month low, an improvement Yao attributed mainly to stronger domestic demand. New export business also expanded for a fourth straight month, though at a considerably more modest pace than June’s 20 month high.
Employment was a bright spot in the release, rising for a fourth consecutive month, the longest sequence of job creation since 2023, with the rate of increase accelerating to one of the strongest seen in the past three years. RatingDog linked the hiring to business expansion, rising client demand and higher salaries aimed at attracting and retaining staff. Backlogs of work extended a ten month growth streak, though the latest increase was the slowest since April, which RatingDog read as a sign that expanding business capacity is starting to catch up with demand.
On costs, input prices rose for an eighteenth consecutive month, with firms citing higher labour, materials, fuel and equipment replacement costs, and the rate of inflation edging up from July’s six month low. Output charges rose for a third straight month, the longest sequence of selling price increases since the first half of 2024, though the pace of increase was described as only marginal. Business confidence over the coming year improved from July’s recent low, supported by planned expansions, new projects and expectations of stronger market demand, though sentiment remained below the average for 2026 so far.
The broader RatingDog China Composite PMI, blending manufacturing and services, rose to 52.1 in August from 50.8 in July, with both sectors registering faster growth in output and new business. Composite employment rose for a fourth straight month, the longest sequence of job growth in over five and a half years, according to the release.
Today’s data lands in clear contrast with Monday’s official readings, when analysts noted that sluggish domestic demand weighed on services activity despite the summer travel peak, and the NBS non manufacturing index held flat at 49.0. The divergence mirrors the pattern already seen earlier in the week in manufacturing, where the official NBS Manufacturing PMI printed 49.8, still in contraction territory, while the private RatingDog Manufacturing PMI came in at 51.5, a two month high. Analysts generally attribute the gap to differences in survey coverage and sampling, with the official surveys carrying a heavier weighting toward larger, state linked enterprises and the RatingDog surveys skewing toward smaller, more export exposed firms. Taken together, the week’s full data set points to a Chinese economy where private sector momentum, particularly in services and export facing manufacturing, is running notably stronger than the more cautious picture painted by official statistics.
This article was written by Eamonn Sheridan at investinglive.com.