A PRIVATE gauge of China’s services activity expanded at a faster pace in January, indicating that a batch of government policy measures is supporting growth in some parts of the economy.

    The Caixin China services purchasing managers’ index rose to 52.4 in January, compared with 50.2 in December, Caixin Media Co. and research firm Markit said Thursday, pointing to a recovery outside the factory sector. The reading is the highest in six month.

    A reading above 50 indicates month-to-month expansion, while a level below that points to contraction.

    “Overall, the fast development of the services sector has to a large extent offset the impact of weakening manufacturing, indicating a better economic structure,” said He Fan, chief economist at Caixin Insight Group.

    “The government should continue to deepen reform, relax administrative controls and reduce restrictions on market entry for service providers. This will release the potential of the services sector and help improve the economic structure,” he said.(SD-Agencies)