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Summer consumption boom, AI-driven tech demand buoy China's service sector in July

China

Summer consumption boom, AI-driven tech demand buoy China's service sector in July
China

China

Summer consumption boom, AI-driven tech demand buoy China's service sector in July

2026-07-31 11:33 Last Updated At:13:07

China saw surging summer consumption and strong performance in the information services-related industries in July, according to the official purchasing managers' index (PMI) data released on Friday.

The summer consumption boom lifted such sectors as aviation, tourism, hospitality and entertainment during the month, data from the China Federation of Logistics and Purchasing (CFLP) showed.

The aviation transport sector reversed a two-month downward trend, with its business activity index surging above 53 percent in July, a notable improvement from the previous month.

Chinese residents' spending on leisure and recreational activities picked up, pushing the cultural, sports and entertainment industry' business activity index above 60 percent, while the sector's new orders index climbed to over 55 percent -- both registering sharp month-on-month increases.

The accommodation sector also posted gains, with its business activity index rising for the second consecutive month to reach 53 percent, while the catering industry also gained steam, with its index rebounding by more than 5 percentage points from June.

In information services, the business activity index for telecommunications, broadcasting, television and satellite transmission services rose month-on-month in July, and has now remained above 55 percent for five consecutive months, while the same index for the internet and software technology services industry remained above 54 percent for four months in a row.

"The sustained demand driven by the AI+ initiative has led information services-related industries to thrive, steadily fueling China's innovation-driven economic dynamism," said Ma Zengrong, vice president and secretary-general of the CFLP.

Looking ahead, China's non-manufacturing businesses are increasingly optimistic about the industry outlook for the second half of the year, with the business activity expectations index rising to 55.4 percent in July, marking the fourth consecutive month of increases.

Analysts expect the non-manufacturing sector to gather further strength in the coming months, as the construction industry recovers with the easing of weather-related disruptions and the continued summer consumption surge.

Summer consumption boom, AI-driven tech demand buoy China's service sector in July

Summer consumption boom, AI-driven tech demand buoy China's service sector in July

U.S. stocks ended higher on Thursday, buoyed by a powerful surge in technology equities led by Microsoft after the software giant posted record quarterly cloud revenue. The Dow Jones Industrial Average rose 613.92 points, or 1.19 percent, to 52,208.06. The benchmark S and P 500 added 121.48 points, or 1.66 percent, to 7,437.63, while the tech-heavy Nasdaq Composite Index soared 679.24 points, or 2.78 percent, to 25,122.18.

Six of the 11 primary S&P 500 sectors closed in positive territory. Technology and consumer discretionary led the advancing groups, climbing 5.24 percent and 1.57 percent, respectively. On the losing side, communication services and consumer staples led the decliners, sliding 2.52 percent and 2.24 percent.

U.S. stocks advance as tech shares rebound

U.S. stocks advance as tech shares rebound

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