CHINA’S services sector grew at the slowest pace in six months in January as growth in new business weakened, a private survey showed, raising expectations that policymakers may unveil more stimulus steps to avert a sharper slowdown in the world’s second-largest economy.

    The HSBC/Markit Services Purchasing Managers’ Index (PMI) slowed to 51.8 last month — the weakest since July 2014 — from December’s 53.4, but remained above the 50-point level that separates growth from contraction in activity on a monthly basis.

    The weakening performance of the services sector, which has helped cushion the broader impact of a cooling manufacturing sector, could fan market concerns about China’s economic slowdown in 2015.

    “The Chinese services sector continued to expand in January, albeit at a slower pace while both input and output price inflation eased,” said Qu Hongbin, chief economist at HSBC.

    (SD-Agencies)