China’s services sector experienced slower growth despite the summer travel peak, with the Caixin/S&P Global services PMI dropping to 51.6 from 52.1 in July. Although the new business index continued to expand, the pace of growth weakened, and firms faced rising costs, leading to staff reductions. While export business and tourism showed improvement, overall business optimism increased to its highest level since May. However, employment fell, average input prices rose, and selling prices declined for the first time in seven months. The Caixin/S&P Global Composite PMI remained at 51.2, reflecting balanced growth between manufacturing and services. Analysts warned that ongoing economic challenges and external uncertainties might jeopardize the government’s 2024 growth target of around 5%.