BEIJING -- China's service sector activity expanded in May, but at a slower pace, an official monthly survey showed on Monday.

The purchasing managers' index (PMI) for the non-manufacturing sector fell to 53.2 in May, [Hong Kong Company Formation]down from 53.4 for April, according to a report released jointly by the National Bureau of Statistics and the China Federation of Logistics and Purchasing.

China's non-manufacturing PMI tracks the business activities of the services and construction sectors. A reading above 50 indicates expansion, while a reading below 50 represents contraction.

Zhao Qinghe, a senior analyst with the NBS, said May's reading indicated China's non-manufacturing sector continued to maintain growth, but at a slower pace.

NBS data showed the service sector sub-index stood at 52, above the expansion/contraction threshold, but down from 52.4 in April, suggesting a slower but stable growth, said Zhao.

The sub-index of business activities for the construction industry in May hit 57.9, up 0.4 percentage points from April, thanks to the government's backing of infrastructure and affordable housing construction.
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The sub-index for business activity expectations posted at 59, indicating that non-manufacturing enterprises are still optimistic about the market for the next three months, [Offshore Company Incorporation]Zhao said.