Services sector grows in China during July

<p>The Chinese services sector expanded last month.</p>

Data from HSBC has shown China's services sector expanded during the course of July.

The HSBC non-manufacturing Purchasing Managers' Index for the country was at 51.3 for the month, with the figure unchanged from June.

Any number above the 50 mark indicates growth within the sector and as a result is deemed to be a positive sign for the economy.

"China's service sector has stabilised at a relatively low level of growth," said Qu Hongbin, an economist at HSBC.

However, this data might not be enough to reverse the slowing pace of growth within the Chinese economy, which has seen the speed of its expansion drop in the last two quarters.

China is currently the second largest economy in the world, but some analysts believe that the Asian nation is going to pass the US into first place in the coming years.

The services sector is thought to account for nearly 43 per cent of China's overall economy and as a result, its health is seen as a key indicator for the state of the economy in the country.

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