China's non-manufacuting sector growth slows in May

China's services sector, which includes construction, saw its pace of growth slow in May adding to fears about a slowdown in China's economy.

The non-manufacturing purchasing manager's index (PMI) dropped to 55.2 in May from 56.1 in April.

The news comes just days after Beijing reported a sharp drop in activity in its manufacturing sector during the month.

The services sector accounts for almost 43% of China's overall economy.

"Simultaneous weakening of manufacturing and non-manufacturing sentiment confirms further loss of momentum in the Chinese economy in the second quarter," said Dariusz Kowalczyk of Credit Agricole CIB.

The PMI is key indicator of activity in the sector and a reading above 50 shows expansion.

However, the reading has now fallen for two successive months and the number for May was the weakest in more than a year.

Source & Image : BBC