China's services activity cools in February: Official PMI

Growth in China's services industry slowed in February after rebounding for two straight months, an official survey showed on Thursday, and analysts expect further weakness this year as a slowing economy makes consumers more cautious about spending.

The official non-manufacturing Purchasing Managers' Index (PMI) fell to 54.3 in February from 54.7 in January, but still well above the 50-point mark that separates growth from contraction.

The fast-growing services sector accounts for more than half of China's economy, and has helped buffer the impact of slowing manufacturing. Factory activity has contracted for three straight months.

But services activity softened late last year amid a cooling property market and faltering consumer demand for products from cars to mobile phones.

Chinese policymakers have introduced a raft of measures to encourage a "consumption upgrade" among middle-class consumers who now demand higher quality products.

The composite PMI, which covers both manufacturing and services activity, edged down to 52.4, from January's 53.2.