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Non-manufacturing industries slow in Jan

Updated: 2012-02-03 11:28

By Wei Tian (chinadaily.com.cn)

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BEIJING - China's non-manufacturing business activity index, co-published by the National Bureau of Statistics and China Federation of Logistics and Purchasing (CFLP) on Friday, was 52.9 percent, 3.1 percentage points lower than the previous month.

The non-manufacturing Purchasing Manager's Index (PMI), which indicates overall changes in the non-manufacturing economy, consists of ten sub indexes. A reading of 50 demarcates expansion from contraction.

Among the sub indexes, the order backlog index, stock index, intermediate input price index, subscription price index and business activity expectation index each picked up 1 to 2 percentage points; while the business activity index, new orders index, new export orders index, employment index and supplier delivery time index have decreased in various degrees.

Business activity in the real estate industry saw its fifth month of decreases, and most increases were seen in the consumer service sectors.

Cai Jin, vice president of the CFLP, said the drop of the non-manufacturing business activity index in January suggested growth in the non-manufacturing economy has slowed.

"Significant downturn in construction activity in the off-season has dragged the overall growth of the non-manufacturing sector," Cai said.

"But the Spring Festival has led to good performance in retail, catering and transport sectors, which became the main driver of growth in January, and to some extent led to the rise in prices," he said.

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