Growth in China's non-manufacturing sector eased notably in January due to significant decline in construction activities during the New Year holidays, the latest survey by the China Federation of Logistics and Purchasing (CFLP) revealed Friday.
The non-manufacturing business activity index fell to 52.9 in January from 56 in December. However, the reading above 50 indicated expansion of the sector.
The significant downturn in the construction activities in the off-season eased growth of the non-manufacturing sector as a whole, CFLP said.
The new orders index fell below the neutral-50 mark, falling by 2 points to 48.5, suggesting a decline in the number of new work received in January. The new export orders index fell by 0.6 points from a month earlier to 45.8.
Meanwhile, there was an increase in intermediate input costs with the corresponding index rising by 1.2 points to 58.6. A separate survey by Markit Economics showed today that the service sector maintained its growth momentum at the start of 2012 with the seasonally adjusted HSBC business activity index remaining unchanged at 52.5 compared to December.
On the other hand, the composite output index, which measures activity in both manufacturing and service sectors, fell to 49.7 from 50.8 in December, suggesting contraction in private sector output.
The overall strength of economic growth remained relatively weak, which will inevitably weigh on the jobs market if weakness persists for longer, HSBC chief economist Hongbin Qu said.
"With inflation on track to ease further, Beijing policy makers still have ample room for more policy easing measures to ensure a soft-landing," the economist added.
According to Markit, average cost burdens faced by Chinese service sector companies rose further in January, while they kept their output charges broadly similar to that seen in December.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.