China’s Service Sector Hits High For This Year

Key indicator shows economy is back on track

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A worker wields a hammer at a demolition site in front of new residential buildings in Hefei, Anhui province, Oct. 19, 2013.

China’s service sector has just experienced its fastest growth this year, indicating that Asia’s powerhouse economy is on the road to recovery.

The non-manufacturing Purchasing Managers’ Index (PMI) for the world’s second-largest economy rose to 56.3 in October from 55.4 for the previous month, reports the BBC. The manufacturing PMI also rose to an 18-month high in October.

China’s economy slowed in the first two quarters of 2013 after years of often double-digit growth. The country’s service sector, which includes construction and aviation, makes up almost 43% of its total economy.

New Chinese President Xi Jinping has said that China’s economy will continue to grow steadily, although likely at a slightly reduced rate as the country embarks upon a new stage of development.