AI Data Insight
China's services business activity index for July 2026 stood at 49.3, flat from the previous month and remaining below the 50 boom-or-bust threshold for the second consecutive month. Although the summer effect drove cultural and tourism consumption, the weak performance of the real estate and capital market services sectors, coupled with disruptions from extreme weather, kept overall domestic demand momentum under pressure. The market expects that without strong counter-cyclical stimulus policies, the services sector may struggle to shake off the haze of contraction in the short term.