China’s services PMI dips to 54.1 in June, but expansion holds steady

China’s services sector kept expanding in June, just not quite as fast as the month before. The RatingDog China General Services PMI, compiled by S&P Global, came in at 54.1 for June, a modest step down from May’s reading of 54.4.

The May reading of 54.4 had been the strongest performance in three months, jumping from 52.6 in April and handily beating market expectations of 52.3. The May data highlighted a few key drivers: robust new orders, a revival in overseas demand, and the highest input cost inflation since October 2024.

Meanwhile, China’s official National Bureau of Statistics reported its own non-manufacturing PMI at 50.2 for June. That’s barely above the expansion threshold, but it’s still above it.

Who is RatingDog, and why should you care

The Shenzhen-based credit research firm took over as the title sponsor of the S&P Global China PMI series in 2025, stepping into a role that gives it significant visibility among global institutional investors. The RatingDog PMI series matters because it operates independently of Chinese government statistics, giving traders and portfolio managers a second data point to cross-reference against the NBS figures.

The services sector deserves particular attention because China has been actively trying to rebalance its economy away from manufacturing and infrastructure investment toward consumption and services.

What this means for crypto and risk assets

The input cost inflation flagged in the May data adds a wrinkle. If service providers face rising costs and pass them along to consumers, it could complicate any plans the People’s Bank of China might have for additional monetary easing.

The next major data point to watch will be Q2 GDP figures, which should reflect the strong services activity captured in these PMI readings. For crypto investors specifically, when China’s services sector is expanding, the macro backdrop for risk assets looks supportive. Right now, this particular pillar is holding firm, even if it’s 0.3 points less firm than last month.

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