Growth in China's services sector cools

Growth in China’s services sector slowed in April, with the country’s non-manufacturing purchasing managers’ index decreasing to 56.1 from 58 in March, Reuters reported. A PMI reading above 50 indicates expansion, while a reading below 50 indicates contraction. A sub-index for new orders fell to 52.7 in April from 53.5 in March, owing to China’s slowing construction industry. Services account for 45% of China’s economy, a smaller proportion than in many developed nations. The reading comes shortly after the release of China’s manufacturing PMI this week, which officially jumped to an 11-month high of 53.1. However, analysts say the high headline growth was driven primarily by expanding activity at large factories. The unofficial HSBC PMI, which is more focused on small and medium enterprises, continued to indicate contraction.