(Yicai) May 6 -- Activity in China’s services sector expanded for the 16th consecutive month in April but at a slower pace, as new business picked up the most in almost a year, according to a closely-watched private survey.

The Caixin/S&P Global services purchasing managers’ index came in at 52.5 last month, down from 52.7 in March, data released by financial media group Caixin showed today. A level above 50 indicates expansion.

That compared with a sharper decline in the official non-manufacturing PMI, published by the National Bureau of Statistics on April 30, which fell to 51.2 from 53 in the previous month.

“Faster new business growth, the quickest in nearly a year, supported the latest rise in activity and an improvement in confidence,” Caixin wrote in a press release. “New export business also rose at a faster rate in April.”

April’s robust figures follow China’s economy getting off to a good start this year, with gross domestic product growing by a better-than-expected 5.3 percent in the first three months.

“The strong start to the year is consistent with the Caixin manufacturing and services PMIs, which have remained in expansionary territory for several straight months,” said Wang Zhe, senior economist at Caixin Insight Group, a think tank.

“Improved market demand drove a continuous increase in supply,” Wang said. “Business activity and total new orders both grew for the 16th straight month, with the latter increasing at the fastest pace since May last year, indicating a solid resurgence in demand.

“The recovery of the global economy has resulted in an increase in inbound tourist numbers,” Wang also noted. “This has helped produce an upward trend in service exports, allowing the corresponding gauge to stay in positive territory for the eighth consecutive month and hit the highest level since last June.

“However, employment declined,” Wang said. “Similar to the previous two months, the sector’s labor market remained in contraction despite an overall market rally. The gauge for employment dropped from March, staying in negative territory for the third straight month.”

The Caixin/S&P manufacturing PMI for April climbed 0.3 point from March to 51.4, a 14-month high, while the composite PMI inched up 0.1 point to 52.8, the highest since last June, indicating that the expnasion in overall business production and operations accelerated.

“Growth in supply and demand in the manufacturing and services sectors picked up pace, with outstanding export growth,” Wang said. “Overall market optimism was maintained.

“Weak expectations remain one of the major hurdles facing economic development, leading to increasing pressure on employment and a greater risk of deflation,” Wang said.

“Therefore, consistent efforts should be made to ensure earlier policies are implemented effectively and promptly, maintaining the current economic recovery momentum and eventually improving overall market expectations,” he concluded.

Editor: Futura Costaglione