China Jun Caixin Services PMI 51.6 Vs 52.8 in May

Activity in China's service sector expanded at a slower pace in June, a private gauge showed Wednesday, pointing to possible softness in the sector, in contrast with official data showing an improvement.

The Caixin China services purchasing managers' index slipped to 51.6 in June from 52.8 in May, the second lowest level in 13 months, Caixin Media Co. and research firm Markit said.

An official gauge released Friday pointed to a faster expansion for the sector.

A reading above 50 indicates an expansion in activity from the previous month while a level below that points to a contraction.

"Even though the impact of slowing expansion in China's services sector was cushioned by a slight rebound in manufacturing activity, the downward trend in the economy remains entrenched," said Zhengsheng Zhong, director of Macroeconomic Analysis at CEBM Group.

Service-related companies reported the weakest increase in new orders in just over a year and said subdued market conditions had weighed on client spending, Caixin said.

China's official nonmanufacturing PMI, which includes the construction sector, rose to 54.9 in June from 54.5 in May, the National Bureau of Statistics said. Both official and Caixin manufacturing PMIs showed improvements in June.

Write to Grace Zhu at grace.zhu@wsj.com

(END) Dow Jones Newswires

July 04, 2017 22:14 ET (02:14 GMT)