The purchasing managers' index (PMI) for China's non-manufacturing sector came in at 49 in August, unchanged from the July level, official data jointly released by the National Bureau of Statistics (NBS) and China Federation of Logistics and Purchasing showed on Monday.
As an indicator of macroeconomic trends, a PMI reading above 50 indicates expansion while a reading below 50 signals contraction.
The sub-index for business activity in the service sector, like traveling, accommodation and catering, and online consumption, stood at 49.3 in August, also flat from the previous month, according to the NBS.
The index for railway transport and air transport both came in above 52 percent, indicating strong public willingness to travel during the vacation season.
Driven by summer consumption season, the online consumption activities also showed significant growth. The business activity index for postal services rose for three consecutive months on a month-on-month basis, reaching above 60 percent in August and hitting a new high for the year.
By sector, the business activity indices for telecommunications, broadcasting, television and satellite transmission services, as well as internet, software and information technology services all remained above 55, indicating robust growth in business volume.
"From the market expectations perspective, the services business activity expectation index maintained above 55 percent, indicating that service sector enterprises remain optimistic about the near-term market outlook," said NBS chief statistician Huo Lihui.
The sub-index for business activity in the construction sector dropped 0.1 percentage points to 46.9 in August, the data revealed. Huo said construction activity slowed in some regions due to extreme weather, including heavy rains and typhoons.
The business expectation index for the construction sector remained flat at 51.8.
The business activity index for civil engineering and construction sector rose by nearly 2 percentage points from the previous month, climbing to above 52 percent. The growing infrastructure activities are expected to serve as an important pillar for stabilizing growth in the fourth quarter.
"For the fourth quarter, adopted policies will be implemented at a faster pace, and new ones will follow in due course. Market-driven growth momentum is also expected to accelerate. The Chinese economy has favorable conditions to maintain steady and sound development," said He Hui, vice president of China Federation of Logistics and Purchasing.
China's non-manufacturing PMI at 49 in August
