China's services activity expanded at a faster pace in July, supported by a jump in business in the summer travel season, a survey showed on Thursday.
China's Caixin Services Purchasing Managers' Index (PMI) rose to 54.1 in July from 53.9 in June, marking an expansion of business activity across the services sector for the seventh straight month.
The 50-point mark separates expansion from contraction in activity.
Companies said improved operating conditions, greater client numbers and new product releases had boosted sales at the start of the third quarter, according to the survey.
Analysts said summer travel could have helped with related consumption, although sales of some big ticket items remained tepid, making July's picture of retail sales mixed.
"The number of customers since the beginning of summer has risen by 60 to 70 percent compared to the same period last year," said a receptionist surnamed Wu at a Hangzhou-based homestay service provider.
The job market in the service industry is booming, with firms increasing hiring figures for the sixth month in a row. Company's payroll numbers expanded at the fastest pace in July since March.
Authorities have rolled out a slew of measures in recent weeks to support economic growth.
"In terms of policies, the top priorities should still be guaranteeing employment, stabilizing expectations and increasing household income," said Wang Zhe, senior economist at Caixin Insight Group.
(CGTN)