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The purchasing managers' index (PMI) for China's non-manufacturing sector dropped from the 56.4 it posted in November to 55.7 in December according to the National Bureau of Statistics (NBS). It has remained above 50 for 10 consecutive months.
A reading below 50 reflects contraction.
The service sector experienced a slower recovery, with the sub-index for business activities standing down to 54.8 in December from 55.7 in November.
The construction industry experienced robust growth with its sub-index for business activities increasing from 60.5 in November to 60.7 in December.
Meanwhile, the sub-indexes for business activities of telecommunications and satellite transmission, civil aviation, and financial services, remained above 60.
China has reduced taxes and fees and provided firms with low-cost loans to help them tide over difficulties brought by the pandemic.
