(Yicai) Feb. 5 -- Activity in China's services sector increased for the 13th straight month in January, while slowing from a five-month high in December amid a gentler rise in new orders, according to the results of an independent survey.

The Caixin services purchasing managers’ index fell to 52.7, down from the prior month’s 52.9, according to data released today by financial media group Caixin. A level above 50 indicates expansion.

“Service sector activity continued to expand at a solid pace across China at the start of the year,” Caixin said in a press release.

“Chinese service providers registered a further increase in overall new business” though “the rate of growth eased notably from December's seven-month record and was only modest,” it said, adding that new export business also rose at a moderate pace.

The PMI compiled by the National Bureau of Statistics and made public on Jan. 31 showed that service sector activity rose to 50.1 in January from 49.3, ending two straight months of contraction.

The Caixin manufacturing PMI stood at 50.8, unchanged from December, while the Caixin composite PMI dipped by 0.1 point to 52.5, brought lower by the slowdown in service sector activity, but still making it the second-highest reading in the past eight months.

“China hit the gross domestic product growth target set in early 2023, but growth in the final quarter was slower than in the third quarter on a quarter-on-quarter basis, indicating that recovery was losing momentum," said Wang Zhe, senior economist at think tank Caixin Insight Group.

Policy efforts should concentrate on boosting employment, incomes, and expectations, Wang said, adding that there is still room for further adjustments in fiscal and monetary policies.

Editor: Emmi Laine