BEIJING — China’s non-manufacturing activity shrunk in January, indicating slowing expansion in the service sector, a monthly survey showed on Feb 1.
The purchasing managers’ index (PMI) for the non-manufacturing sector came in at 53.5 in January, down from 54.4 in December, according to a report released by the National Bureau of Statistics, and the China Federation of Logistics and Purchasing.
A reading above 50 indicates expansion, while a reading below 50 represents contraction.
The service sector subindex stood at 52.7 in January, down from 53.7 in December. Businesses related to retail, travel, post and courier services expanded in January, thanks to the festive season, NBS statistician Zhao Qinghe said.
The financial subindex weakened to 57.8 in January, down 6.9 points from December but still sitting in positive level, influenced by the fluctuations in Chinese capital market since the start of this year, according to Zhao.
The subindex for new orders also dipped, sitting at 49.6, showing dwindling demand in the non-manufacturing sector.
The non-manufacturing PMI tracks business activities of both the service sector and the construction industry.
Subindex for construction activity slipped to 57.8 in January, down 0.5 point in December, due to the inclement weather.