(Yicai Global) March 5 -- China's services sector grew at its slowest pace in four months in February because of sluggish new orders, particularly for exports, according to a private gauge of activity.
The Caixin Services Purchasing Managers' Index stood at 51.1 last month after seasonal adjustment, down from 53.6 in January, London-based data provider IHS Markit, which produces the index with China's Caixin Insight CEBM Group, said today. New export orders expanded at the slowest rate in five months, Markit's release added.
The headline figure contradicts the official PMI's findings, which was more positive at 53.5 and down just 0.1 point on the month. A reading over 50 indicates expansion; one below shows contraction.
The Caixin China Composite PMI, which covers both manufacturing and services, fell to 50.7 from 50.9.
China has two key purchasing managers' indexes. The official PMI is compiled by the government and tracks 3,000 companies, most of which are state backed, whereas the Caixin index, often known as the Caixin-Markit index, references 500 firms, which are generally smaller and private.
Editor: Ben Armour