The RatingDog China General Services PMI increased to 52.3 in January 2026 from December’s six-month low of 52.0, surpassing market expectations of 51.8. The latest reading marked the strongest expansion in the services sector since last October, driven by stronger growth in new orders, supported by a fresh increase in foreign sales. In response to the rise in new orders, firms increased staffing for the first time since last July, contributing to a slight rise in backlogs. Backlogs continued to accumulate at a moderate pace, though the rate of accumulation did not accelerate significantly despite faster new order growth, reflecting increased labor supply. On prices, input costs continued to rise, driven by higher prices for purchased items and fuel. However, the rate of cost inflation eased to a five-month low, while selling prices were broadly stable. Finally, sentiment weakened to below the average level seen in 2025 amid rising concerns over the outlook for global economic growth.