China's service sector solidified its position as the primary engine of economic growth in the first quarter of 2026, contributing 61.7% of the country's GDP, according to data released by the National Bureau of Statistics (NBS). This marks a 0.4 percentage point increase compared to the same period last year, underscoring the sector's accelerating momentum.
The NBS reported that services drove 63.2% of China's overall economic growth during Q1, up 4 percentage points year-on-year. Peng Yongtao, an NBS official, highlighted that
"major service sectors have posted broadly robust revenue growth since the start of the year,"
fueled by innovation in business models and consumer demand for diversified, high-quality experiences.
Service retail sales grew 5.5% year-on-year in Q1, outpacing goods retail sales by 3.3 percentage points. The services business activity index rose to 50.2 in March, signaling expanding market confidence. Analysts attribute this growth to emerging consumption trends, including tech-driven platforms and personalized tourism services.
Looking ahead, authorities plan to enhance supply efficiency and cultivate new growth areas to sustain the sector's high-quality development. These measures aim to reinforce the service industry's role in stabilizing China's economic trajectory amid global uncertainties.
