Slower growth in the services and farming sectors dragged down China’s economic growth during the last quarter of 2018, countering the boost from a government-led uptick in construction activity, Reuters reports.
Growth in services fell to 7.4% from 7.9% in the previous quarter, while agriculture grew 3.5%, down from 3.6%, according to data from the National Bureau of Statistics.
Services accounts for nearly 50% of China’s economy, as Beijing attempts to transition away from its export-led growth model toward one based on domestic consumption. However service industries from real estate to technology are being affected by a weakening in consumer spending and bearish investor sentiment.
Real estate services suffered a sharp slowdown, with growth falling to 2% from 4.1% a quarter earlier.