China’s non-manufacturing activity rose in August despite the country’s slowing economy, an industry group said Monday.
The Purchasing Managers Index (PMI) of China’s non-manufacturing sector came in at 56.3 percent in August, up from 55.6 percent a month earlier, according to the China Federation of Logistics and Purchasing (CFLP).
A reading of 50 or above represents an expansion of the sector from the previous month while a reading lower than 50 represents a contraction. The non-manufacturing sector includes construction, retail, catering and property sectors.
The growth in the index came amid signs that housing prices were bouncing back.
Meanwhile, China’s manufacturing PMI shrank last month for the first time in nine months, with the index falling to 49.2 from 50.1 a month earlier, the CFLP said Sunday.
The contracting manufacturing activity showed that the export-driven Chinese economy has been affected by fading demand in the United States, Europe and other major economies.
Market watchers said Chinese authorities will ease the country’s monetary policies in a bid to boost the country’s manufacturing activities.China’s on-year growth rate slowed to 7.6 percent in the second quarter, marking the first time since the fourth quarter of 2009 that the country’s economic growth rate has fallen below the 8 percent mark.