Chinese growth 'encouraging'

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Chinese growth 'encouraging'

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Growth in China’s services sectors rose in March thanks to a construction boom and firmer demand from improving economic conditions; that includes property, and the retail and hotel trades.

Surveys of company purchasing managers for the non-manufacturing sector also found business confidence at its best level in 10 months.

Analysts said this is an encouraging sign that China’s moderate economic revival is extending beyond its factories into the increasingly-important services industry.

The services sector has weathered the global slowdown much better than China’s factory sector, in part because it does not rely on exports for growth unlike manufacturers, who have been battered by crumbling foreign demand.

The services sector, which overtook factories as the biggest employer in China in 2011, accounted for 46 percent of the Chinese economy last year, as big as the manufacturing industry.