China's non-manufacturing PMI drops in June

China's non-manufacturing purchasing managers' index (PMI) dropped to 55 points in June from a six-month high of 55.5 in May, official data showed on Thursday.

The non-manufacturing PMI, compiled by the National Bureau of Statistics and the China Federation of Logistics and Purchasing (CFLP), tracks activity in sectors including construction, software, aviation, railway transport and real estate.

In spite of the slight drop, non-manufacturing activity was still at a relatively high level, as the index was still five points above the boom-bust line of 50, said the CFLP's deputy chief Cai Jin.

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

The sub-index for new orders dropped two points to 50.7, indicating far less domestic orders than a month earlier. New export orders saw the largest decline of 2.5 points to stay at 50.2 in June.

The business outlook index edged down slightly to 60.4 points in June from 60.7 for the previous month, showing weaker confidence among companies in the future prospects of the sector, data showed.

Production-related service sectors saw a strong upward trend, especially those closely related to manufacturing, Cai said.

The business activity index, new orders index and new exports index for manufacturing-related service sectors all experienced sharp rises, showing the impact of the manufacturing sector's strong performance.

On Tuesday, the CFLP announced that China's manufacturing PMI rose to a six-month high of 51 points in June, performing strongly at the end of the second quarter, and an encouraging sign that the economy is further stabilizing.

The employment index for the non-manufacturing sector dropped 0.5 points from a month ago to 50.4 in June, data showed.

The index for intermediate input prices rose 1.5 points to 56 percent, signaling rising operating costs. The index for charges, which measures sales prices and charges, rose 1.8 points to 50.8.