China service industries expand at slower pace in April

China's service sectors expanded at a slower pace last month, according to the latest data released by the National Bureau of Statisitics and the China Federation of Logistics and Purchasing. For more details, we are joined by Michelle Xing, Michelle this mirrors the picture we got of the manufacturing sector.

China's non-manufacturing PMI fell to 54.5 in April from 55.6 in March. But a reading above 50 still indicates activities in the sector are accelerating, just in a slower pace. This deceleration could cause concern that China's economic slowdown will extend into a second quarter. The services sector index came out after the bureau's manufacturing PMI which also slowed in April.

Breaking down the numbers, the services business activity sub-index came in at 52.5, down 1.4 points from last month. Property related indices also showed major contraction, which could indicate that the property activities in China are stabilizing. New orders sub-index also dropped, coming in at 50.9.

That's the lowest since October 2011. Construction sector new orders, on the other hand, showed slight increase from last month as the government increased infrastructure investments. Analysts stressed the need to further expand the services sector and increase domestic demand to boost economic growth in the second quarter. Many also expect the government to step up investment further in the coming months.