China's service sector activity further picked up steam in July, an official monthly survey showed on Saturday.

The purchasing managers' index (PMI) for the non-manufacturing sector expanded to 53.9 in July, up from 53.8 for June, according to a report released jointly by the National Bureau of Statistics and the China Federation of Logistics and Purchasing (CFLP).

The rise has marked the second straight month of expansion, which indicated that non-manufacturing activities are holding steady, said Wei Wu, an analyst at the China Logistics Information Center.

Non-manufacturing PMI tracks the business activities of the services and construction sectors. A reading above 50 indicates expansion, while a reading below 50 represents contraction.

The service sector sub-index stood at 52.8 in July, up from 52.3 in June, indicating quicker growth in the service industry. Sectors such as transport, postal services, telecommunications, broadcasting, Internet, software, and finance all expanded last month.

However, the sub-index for the construction sector retreated to 60.1 in July, down from 62.1 in June, which indicated that even though construction activities were expanding, the pace of expansion slowed, according to the survey.

Meanwhile, the new order sub-index in general slid to 50.1 in July, down from 51.3 in June, indicating a slowing growth in market demand. CLFP vice president Cai Jin attributed the decline to a weak season.

China manufacturing activity retreats in July

China's manufacturing business activity retreated slightly in July from the previous month, official data showed on Saturday.

The manufacturing purchasing managers' index (PMI), a key measure of factory activity in China, posted at 50.0 in July, down from 50.2 in June, according to data compiled by the National Bureau of Statistics and the China Federation of Logistics and Purchasing.

A reading above 50 indicates expansion, while a reading below 50 represents contraction.

The production sub-index posted at 52.4 last month, down from 52.9 in June.

The sub-index for new orders came at 49.9 in July, down 0.2 percentage points compared to June, indicating grim challenges in demand.

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