An official gauge of business activity outside Chinese factory floors rose to a seven-month high in June, boosted by a recovery in the service industry.
China’s official nonmanufacturing purchasing managers index climbed to 54.4 in June from 53.6 in May, the National Bureau of Statistics said Tuesday. June’s reading showed a month-on-month expansion, coming in above the 50 level.
The subindex measuring business activity in the service industry increased to 53.4 from 52.3 in May. The subindex measuring construction activity dropped to 59.8 in June from 60.8 previously.
The new-orders subindex for the entire nonmanufacturing sector, a measure of demand, was up a tick to 52.7 from 52.6 in May. A subindex measuring employment edged up to 48.7 from 48.5.
Production-related service providers benefited from continued expansion in factory activity, although some service providers, such as recreational and consumer services, still faced operational difficulties, said Zhao Qinghe, a statistics bureau analyst.
The nonmanufacturing PMI covers services such as retail, aviation and software, as well as the real-estate and construction industries.
The data are based on the replies to monthly questionnaires sent to purchasing executives at 4,000 companies in 37 nonmanufacturing sectors.
A separate gauge of factory activity, also released Tuesday by the statistics bureau, showed faster expansion in June. The official manufacturing PMI rose to a three-month high of 50.9 in June from 50.6 in May.