The purchasing managers' index (PMI) for China's non-manufacturing sector returned to expansion in May, standing at 50.1 percent with 0.7 percentage points growth from the previous month, official data showed Sunday.
A reading above 50 indicates expansion, while one below 50 reflects contraction.
Specially, the business activity index for the service industry rose into expansion territory, indicating improved market activity.
Consumer demand during the May Day holiday boosted the business climate of industries related to travel, dining, cultural and sports leisure, and shopping.
"The business activity indices for industries such as railway transportation, telecommunications, broadcasting, television, insurance and satellite transmission services were all in the relatively high prosperity range above 55 percent, with rapidly growing business volume," said Huo Lihui, chief statistician of the Service Industry Survey Center at the National Bureau of Statistics.
In May, the business activity index for the construction industry was 48.8 percent, up 0.8 percentage points from last month. Noticeably, the business activity index for civil engineering construction related to infrastructure continued to remain above 52 percent.
The business activity expectation index for the construction industry was 51.5 percent, up 1 percentage point from the previous month, indicating that construction companies have regained some confidence in the future development of the industry.
"The overall prosperity level of the construction industry improved from the previous month, especially with the continued expansion of infrastructure-related activities. As demand related to urban renewal and the Six Networks initiative is continuously unleashed, infrastructure investment is expected to continue to drive stable growth," said He Hui, vice president of the China Federation of Logistics and Purchasing.
The "Six Networks" refer to water networks, new-type power grids, computing power networks, next-generation communication networks, urban underground pipeline networks, and logistics networks.
Overall, the prosperity level of the non-manufacturing sector improved compared with that in the previous month, with both consumption and investment in a stable operating trend, and the fundamentals of economic growth remaining sound.
China's non-manufacturing PMI back in expansion in May
