Caixin service PMI falls to 11 month low

BEIJING - China's service sector continued to moderate in April, as a private survey Thursday showed that an index for the sector had fallen to its lowest level in 11 months.

The Caixin General Services Purchasing Managers' Index (PMI) slipped to 51.5 in April from 52.2 in March, according to the survey conducted by financial information service provider Markit and sponsored by Caixin Media Co. Ltd.

A reading above 50 indicates expansion, while a reading below 50 represents contraction.

The decline follows a drop in the Caixin China General Manufacturing PMI to 50.3 last month from 51.2 in March.

As a result, the Caixin China Composite Output Index, which covers both manufacturing and services, fell to 51.2 in April from 52.1 the previous month, the lowest in 10 months.

The Caixin indexes, which cover the country's emerging small businesses, were in line with the official service PMI released by the National Bureau of Statistics (NBS) that tracks large and medium-sized businesses.

The non-manufacturing purchasing managers' index came in at 54 in April, down from 55.1 in March, according to the NBS.

The service sector has played an increasingly important role in the Chinese economy, as it creates nearly half of the country's jobs.

In the first quarter, the service sector accounted for 56.5 percent of the overall economy. In terms of growth, with agriculture and the secondary industry trailing far behind.