The RatingDog China general services purchasing managers’ index, compiled by S&P Global, fell to 54.1 from 54.4 in May, beating expectations for a reading of 53.0. A reading above 50 indicates expansion, while a reading below signals contraction.
The composite output index dipped to 53.6 in June from 54.0 the month before, but remained above the 50.0 mark for the thirteenth month in a row and above the 12-month average of 52.4.
RatingDog founder Yao Yu said: "Sub-index data indicated a marginal moderation in expansion momentum from May, though overall conditions remained robust. The business activity index posted 54.1, easing from the three-month high recorded in May, yet still exceeding the 12-month average of 53.1. Total new business increased for the forty-second consecutive month, with growth decelerating slightly while remaining at a firm level, supported by domestic demand. A notable positive signal came from external demand, as new export business expanded at the fastest pace so far this year, reinforcing the trend of improvement in overseas orders.
"Price dynamics showed mixed changes. Input costs rose for the sixteenth consecutive month, but the rate of inflation moderated from May's 19-month high, easing cost pressures mildly. Meanwhile, selling prices returned to expansionary territory after two months of marginal contraction, indicating an improvement in service providers' pricing power.
"The labour market continued its positive trajectory. Employment levels expanded for the second consecutive month, with the pace of job creation accelerating further, as firms increased headcount in response to sustained demand improvement."