Beijing: Activity in China`s services sector grew modestly in February as new orders rose at their quickest pace in three months, a private survey showed just a few days after the central bank cut interest rates to stimulate the world`s second-largest economy.
The HSBC/Markit Services Purchasing Managers` Index(PMI) picked up to 52.0 last month from January`s 51.8 and remained above the 50-point level that separates contraction from growth in activity on a monthly basis.
A sub-index for new orders rose to 52.2 in February from 51.2 in January and the sub-index measuring new business also rose.
Official surveys showed on Sunday that growth in the services sector picked up to 53.9 last month from January`s 53.7, which the National Bureau of Statistics attributed in part to strong holiday spending during the Lunar New Year holidays. [ID:nL4N0W13DO]
China`s economic growth slowed to 7.4 percent in 2014 - the weakest in 24 years, from 7.7 percent in 2013, even as the job-creating services sector outperformed the factory sector.
A further slowdown to around 7 percent is expected this year, even allowing for additional stimulus measures, as a cooling property market, excess manufacturing capacity and slowing investment weigh on activity.
