The Caixin China General Services PMI rose to 52.6 in July 2025, up from June’s nine-month low of 50.6 and exceeding market expectations of 50.4. The reading signaled the fastest expansion in the services sector since May 2024, with new business growing at the strongest pace in a year, driven by a renewed increase in foreign demand. External demand expanded for the first time in three months - and at the fastest pace in five months - boosted by a rebound in tourism activity and more stable trade conditions. Employment increased at the quickest pace since July 2024, rebounding after a decline in the previous month, while backlogs of work rose slightly. On the price front, input costs rose due to higher prices for raw materials, fuel, and wages. As a result, selling prices rose for the first time in six months. Looking ahead, business sentiment improved to the highest level since March, amid hopes of strengthening global economic and trade conditions in the coming months.