Services sector grows at slowest pace in 5 months

 

　　The non-manufacturing purchasing managers' index stood at 54.5 last month, down from 56.2 in January, a report released yesterday by the National Bureau of Statistics and the China Federation of Logistics and Purchasing showed.

 

　　It was the slowest pace since September when the PMI reached 53.7.

 

　　Still, the latest reading showed China's increasingly important services industries continued to rise, albeit at a slower pace. A reading above 50 indicates expansion.

 

　　The new orders sub-index fell to 51.8 from January's 53.7, while the index for air and road transport, telecommunication, and retail posting over 50 and that for property, information technology and water transport pointing below 50, the report said.

 

　　The official manufacturing PMI, which is weighted toward state-owned enterprises, fell to 50.1 from January's 50.4. A separate index by HSBC, which favors private and export-oriented firms, fell to 50.4 from January's two-year high of 52.3.

 

　　The decline was partly due to fewer working days and slower industrial activities last month because of the Spring Festival holiday.

 

　　“February is a low season for construction activities which led to moderating activity in non-manufacturing,” Cai Jin, the federation's vice chairman, said in a statement accompanying the report. “But looking at data from the past two months, the non-manufacturing economy continued to grow relatively fast this year and the good trend may continue as the peak season for construction and consumption approaches.”

 

　　Some service industries surveyed by the federation have a brighter outlook, giving policy makers comfort the slowdown may not be broad based.

 

　　New orders for civil engineering building rose to a record high, signaling the sector's “sustained and strengthening drive” behind the economy, the federation said.