(Yicai) March 5 -- Activity in China's service sector expanded for the 14th straight month in February, while slowing for the second month in a row, according to a widely watched private gauge.

The Caixin services purchasing managers' index was 52.5 last month, down from 52.7 in January, data released by financial media group Caixin showed today. A level above 50 indicates expansion. The figure reached a five-month high of 52.9 in December.

The official non-manufacturing PMI for February, published by the National Bureau of Statistics on March 1, rose to 51.4 from 50.7 in the prior month.

“Supply and demand continued to expand in February at a pace similar to the previous month amid the market upturn,” said Wang Zhe, senior economist at Caixin’s think tank, adding that the jobs market shrank. 

“Some surveyed companies took a more cautious approach to hiring as prospects were slightly below expectations. The gauge for employment sank back into the contraction zone, hitting the lowest since December 2022,” Wang noted.

The Caixin manufacturing PMI came in at 50.9 last month, up 0.1 point from January and growing for the fourth consecutive month, data showed on March 1. Changes in the manufacturing and service sectors offset each other, leaving the composite PMI unchanged at 52.5.

"At the start of 2024, policymakers doubled down on measures aimed at stabilizing growth and strengthening market confidence, which was conveyed through a series of meetings hosted by local governments after the lunar new year holiday," Wang said.

"Looking ahead, the focus should be on the effectiveness of the measures," he added. “Further efforts may be required to improve people's livelihoods and market expectations.”

Editor: Martin Kadiev