(Yicai Global) May 31 -- The expansion in China’s factory activity slowed a little this month, as production accelerated but new orders fell.

The purchasing managers’ index for manufacturing fell to 51 in May from 51.1 last month, according to data the National Bureau of Statistics published today.

The gauge has stayed above 51 for the past three months, reflecting stable growth in the manufacturing sector. A mark above 50 indicates expansion.

The production sub-index rose 0.5 percentage point to 52.7, indicating increasing output, while new orders fell 0.7 percentage point to 51.3, suggesting weaker demand, said Zhao Qinghe, a senior statistician at the NBS. The sub-index for high-tech manufacturing rose for a third straight month to 55.2.

Meanwhile, the non-manufacturing PMI climbed to 55.2 this month from 55.5 in April, indicating strong momentum, Zhao said.

The services PMI was 54.3, registering a slight dip of 0.1 percentage point from the previous month, but still 1.1 percentage points higher than the annual average.

The expected index of business activities reached 62.4, keeping above 62 in the last four months, suggesting a positive outlook among firms for further market recovery.

The construction industry surged 2.7 percentage points to 60.1. The indexes for new orders and employment stood at 53.8 and 53, up 1.4 points and 2 points respectively, over the last month.

The number of new construction contracts signed by companies has increased significantly, labor demand has risen, and the building industry has gained more momentum for expansion.

Editor: Futura Costaglione