China’s Surprise Services Upswing Shows Firms Absorb Price Shock

China’s services activity unexpectedly expanded at a stronger pace in April, a private survey showed, even as price shocks from the Iran war ripple through the economy and companies choose not to pass on higher costs to customers.

The RatingDog China services purchasing managers’ index rose to 52.6 from 52.1 in March, according to a statement published Wednesday, staying well above the mark separating expansion from contraction. The median forecast of economists surveyed by Bloomberg was 52.