BEIJING, July 3 Growth in China's services
sector remained strong in June but edged down from a six-month
high, with the purchasing manufacturing index (PMI) for the
industry slipping to 55, government data showed on Thursday.
That compares with a reading of 55.5 in May, according to
the National Bureau of Statistics. A reading above 50 in PMI
surveys indicates growth on a monthly basis, while an outcome
below the threshold points to a contraction in activity.
More economic indicators are suggesting that the world's
second-largest economy is steadying as a flurry of government
stimulus measures start to kick in. The results in other similar
surveys of Chinese factories earlier in the week were also
A breakdown of Thursday's data showed new orders fell to
50.7 from May's 52.7, the biggest drop in at least a year. But
companies remained confident despite the decline, with business
expectations only dipping slightly to 60.4 from May's 60.7.
"We should especially note the evident rebound in services
businesses related to manufacturing activities," Cai Jin, a vice
president at the China Federation of Logistics and Purchasing --
which compiles the official PMI -- said in a statement on the
agency's official microblog Weibo account.
"New orders from commodity retailers showed a big rebound,
indicating that the stabilising growth momentum in the factory
sector is filtering into the services industry."
The services sector, which accounted for 45 percent of
China's gross domestic product in 2012 and roughly half of all
jobs in the country, is expected to post steady growth in coming
years as the economy matures.
(Reporting by Koh Gui Qing; Editing by Kim Coghill)