China's service sector activity retreats in Sept

China Sept factory activity edges up on stronger orders

Services sector expands with manufacturing

BEIJING -- China's service sector activity slowed down in September from a peak in August, data company Markit said Wednesday.

The HSBC/Markit China Services Business Activity Index, which provides a snapshot of operating conditions in the sector, was posted at 53.5, down from a 17-month high of 54.1 recorded in August.

The HSBC/Markit Index samples over 400 private service sector companies in China. A reading above 50 indicates expansion, while one below 50 indicates contraction.

The data showed that "new order books" expanded at a solid pace for service sector companies in September, despite the rate of increase easing since August's 19-month high.

While job shedding persists for manufacturers, service sector firms continued to raise staff numbers in September. Staffing levels rose for the thirteenth successive month at service providers in the month.

Service sector firms in China also saw a further rise in average input costs for September. However, the rate of inflation was moderate and the weakest since April.

Service providers were optimistic towards the 12-month business outlook, with the degree of positive sentiment rising to a six-month high in September.

The purchasing managers index (PMI) of non-manufacturing sectors posted at 54 percent in September, down 0.4 percentage points from August, according to a joint survey by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) last week.