Services Carry the Economy
In H1 2026, China's tertiary (services) industry grew 5.2% year-on-year to 41.3709 trillion yuan — the fastest of the three sectors and the main stabilizer of the 4.7% headline GDP print. Services now dominate output and employment alike.
Where the Strength Is
- Digital services & platforms: steady double-digit-adjacent expansion
- Travel & hospitality: recovering on holiday and business mobility
- Health, elder care & education: structural demand from an ageing population
- Logistics & e-commerce: underpinned by still-robust trade flows
Consumption Link
Services are the largest component of household consumption. Their resilience supports the 'dual circulation' strategy of relying more on domestic demand, and helps offset weakness in goods-producing and property-related activity.
Outlook
With employment stable and incomes recovering gradually, services should remain the growth anchor through H2. Targeted measures — consumption subsidies, tourism promotion and the 'silver economy' — are likely to keep the sector ahead of industry and agriculture.