China Services Sector Expands Fastest in 3 Months

BEIJING — China's services sector expanded at its fastest pace in three months in January 2026, driven by stronger domestic and export demand that also spurred a modest increase in hiring, according to a private survey released on Wednesday.

The RatingDog China General Services Purchasing Managers' Index, compiled by S&P Global, rose to 52.3 from 52.0 in December, marking the highest reading since October and staying above the 50-point line that divides growth from contraction. This continued a streak of expansion in the sector lasting more than three years, signaling a steady if cautious start to the year for businesses.

The uptick was fueled by quicker growth in new orders, with companies reporting gains from successful marketing efforts, heightened client interest and new product introductions. Export orders also turned positive after contracting in late 2025, recording their second increase in three months and reflecting improved overseas demand. These inflows prompted service providers to add full-time and temporary staff for the first time since July 2025, though the hiring remained limited and represented only the fourth such rise in the past year. The added workforce...