China's service sector sentiment in August rebounded after slowing for four months, an industry group said Monday, easing market worries over a downturn in the world's second-largest economy.
The Purchasing Managers Index (PMI) of China's non-manufacturing sector came in at 59.3 in August, up from 57.6 a month earlier, according to the China Federation of Logistics and Purchasing (CFLP).
A reading of 50 or above represents an expansion of the sector compared to the previous month while a reading lower than 50 represents a contraction. The non-manufacturing sector accounts for less than 45 percent of China's economy.
The CFLP said the rebound was largely attributable to China's major holidays that fell last month and this month. Chinese people usually expand their spending before and during the lunar Mid-Autumn Festival and the National Day on Oct. 1.
The federation, however, said the global economic turmoil has been affecting the country's economy.
"The overall market situations for exports and properties are not very favorable," said Cai Jin, vice president of the CFLP.