The Caixin China General Services Business Activity Index, which provides a snapshot of operating conditions in the country’s services sector, fell to 52.7 in May from a 15-month high of 54.5 in April, reported Caixin.
The slower growth in the services sector dragged down the Caixin China Composite Output Index, covering both manufacturers and service providers, to 51.5 in May from 52.7 in the previous month.
“Overall, China’s economic growth showed some signs of slowing in May. Employment and business confidence, in particular, merit policy makers’ attention,” said Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group, an affiliate of Caixin Global.
The services sector accounted for more than 57% of China’s gross domestic product in the first quarter of this year and contributed to more than 60% of economic growth.