China's non-manufacturing index raises to 55.4%

BEIJING: China's non-manufacturing purchasing managers' index ( PMI) rose to 55.4 per cent in September from 53.9 per cent for August indicating expansion amid concerns over slowdown of Chinese economy.

A PMI reading of more than 50 per cent indicates expansion in non-manufacturing activity, while a reading below 50 per cent indicates contraction.

The non-manufacturing index expanded by 55.4 per cent, the National Bureau of Statistics ( NBS) and the China Federation of Logistics and Purchasing ( CFLP) said.

The index reflected strong growth in consumption services represented by retail thanks to the holiday factor in September.

It also showed that the restructuring policies had boosted demand in the service sector, said Cai Jin, vice chairman of the CFLP, state-run Xinhua news agency reported.

The non-manufacturing PMI covers sectors including service, construction, software, aviation, railway transport and real estate.

The sub-index for new orders rose to 53.4 per cent in September, up 2.5 percentage points from August.

The sub-index for new exports orders climbed to 50.5 per cent in September, up 0.9 percentage points from August.

The data came after Tuesday's official release of China's monthly manufacturing PMI, which set a 17-month high to 51.1 percent in September from 51 per cent in August.