China services activity grows at fastest pace in three months, private PMI shows

BEIJING, June 3 (Reuters) - China's services activity expanded at the fastest pace in three months in May, helped by stronger growth in new business and a rebound in overseas demand, though rising cost pressures weighed on firms, a private-sector survey showed on Wednesday.

The RatingDog China General Services Purchasing Managers' Index, compiled by S&P Global, rose to 54.4 in May from 52.6 in April, staying above the 50-mark that separates expansion from contraction.

The reading was broadly in line with an official survey released on Sunday, which showed services activity returning to expansion after contracting in April. The two surveys cover different samples.

-- New business grew at the fastest pace in three months, supported by improved demand, business innovation and new client acquisitions. New export business returned to growth after contracting in April.

-- Service providers added jobs for the first time in four months, responding to a rise in outstanding business.

-- Input cost inflation accelerated to its highest level since October 2024, driven by higher oil and fuel prices, increased procurement costs and rising wages.

-- Business confidence about activity over the coming year remained positive.

-- The Composite Output Index rose to 54.0 in May from 53.1 in April.

(Reporting by Liangping Gao and Ryan Woo; Editing by Jacqueline Wong)