Non-manufacturing sector fell in April

China's non-manufacturing businesses expanded more slowly in April, because of a moderated increase in market demand in the construction and services industries, national statistics show.

The Purchasing Managers' Index in the non-manufacturing sector, which indicates operational activity, declined to 56.1 last month from 58 in March, the National Bureau of Statistics and China Federation of Logistics and Purchasing said in a joint release on Thursday.

"China's non-manufacturing economy retained steady growth in April," Cai Jin, vice-chairman of the federation, said in a statement.

The expected increase in investment and consumption in the holidays was likely to speed up non-manufacturing business expansion in May, Cai said.

The non-manufacturing PMI is based on a survey of 1,200 companies in 27 industries including transportation, real estate, retailing, catering and software. A reading above 50 means expansion while that below 50 shows contraction.

According to the survey, the sub-index of new orders dropped to 52.7 in April, compared with 53.5 in March, meaning market demand increased at a slower pace, the federation said.

Meanwhile, the intermediate input price sub-index decreased by 2.3 points to 57.9 last month thanks to the easing of the country's inflation, the statement said.