BEIJING (Reuters) - Growth in China’s services industry slowed in February, an official survey showed on Wednesday, suggesting the key sector is starting to display signs of fatigue.
The official non-manufacturing Purchasing Managers’ Index (PMI) fell to 54.4 from 55.3 in January to lowest since October 2017.
China’s leaders are counting on growth in services and consumption to rebalance their economic growth model from its heavy reliance on investment and exports.
The services sector accounts for over half of China’s economy, with rising wages giving Chinese consumers more spending power.
Spending was also likely boosted by the week-long Lunar New Year holidays, which fell in mid-February this year. The retail and catering sectors posted sales of 926 billion yuan ($146 billion) during the holiday.
Reporting by Stella Qiu and Beijing Monitoring DeskEditing by Shri Navaratnam