The Purchasing Managers’ Index (PMI), for China’s non-manufacturing sector dropped by 52.6 per cent in August down from 53.8 per cent in July.
The National Bureau of Statistics (NBS) said on Wednesday.
A reading above 50 per cent indicates expansion, while a reading below reflects contraction.
The construction sector maintained steady expansion in August driven by rapid progress in infrastructure construction and the growth of market demand.
The sub-index for business activities in the sector stood at 56.5 per cent remaining in a high expansion zone.
The service sector reported slower recovery in August due to factors including the epidemic and high temperatures.
The NBS senior statistician, Zhao Qinghe, said that the sub-index for business activities declined 0.9 per cent points from July to 51.9 per cent, remaining in the expansion range.
Wednesday’s data also showed that the PMI for China’s manufacturing sector came in at 49.4 per cent in August, up from 49 in July.
