Chinese service sector continued to expand in May, according to an industry index released by HSBC on Wednesday.
The HSBC/Markit China's services purchasing managers' index (PMI) was posted at 53.5 in May, up from 52.9 in April, registering the quickest expansion in eight months.
The index samples more than 400 private service sector companies in China. A reading above 50 indicates expansion.
HSBC said the growth was supported by a further increase in new work in May, and the latest increase in new business and new orders at service sector companies also boosted the PMI growth.
On Monday, HSBC/Markit announced that the PMI for China's manufacturing sector in May stood at 49.2, higher than the preliminary official reading of 49.1.
Annabel Fiddes, an economist at Markit, said the latest China PMI data saw a strong service sector performance offsetting a deteriorating outlook among manufacturers, leading to a modest rise in overall business activity.
"Furthermore, service providers saw the strongest upturn in new business for three years in May, which supported sharper growth of activity and employment," Fiddes said.
She added that further stimulus measures may be required to keep up with an annual GDP growth target of 7 percent as growth momentum appears relatively weak, weighed down by an ongoing deterioration in manufacturing operating conditions.
