The purchasing managers index for China’s non-manufacturing sector rebounded after falling for three consecutive months, according to official data released yesterday. The non-manufacturing PMI was 54.1 percent in July, up from 53.9 percent for June, according to the National Bureau of Statistics and the China Federation of Logistics and Purchasing. A PMI reading above 50 percent indicates expansion, while a reading below 50 percent indicates contraction. The improving non-manufacturing figure is in line with China’s manufacturing PMI, which also rose in July to 50.3 percent from 50.1 percent in June, according to previously released figures. Cai Jin, vice chairman of the CFLP, said the slight increase indicated a good start for China’s economy in the second half of the year. “Although challenges remain, China’s economy has the foundations for steady growth,” Cai said. China’s economy has been stuck in a weak recovery, easing to 7.5 percent growth in the second quarter from 7.7 percent in the first three months and 7.9 percent in the final quarter of 2012. The CFLP said China’s service sector is becoming increasingly active — boosting the economy. In the service sector, the sub-indices for business activity and new orders both rose for two consecutive months, up to 53 percent and 50 percent, respectively. Information-related consumption increased rapidly during the period, the CFLP said. New types of businesses appearing in the service sector will push growth in the second half, it said. Construction activity also remained at a high level in July, according to the CFLP, with the sub-index for business activity staying above 58 percent. The CFLP said small businesses in the non-manufacturing sector saw their performance improve. Their sub-indices for business activity and new orders ended two consecutive monthly decreases and rebounded, though still remained below 50 percent. China’s non-manufacturing PMI is based on a survey of some 1,200 companies in 27 sectors.