China's non-manufacturing PMI drops in June

A salesperson works at a supermarket in Shijiazhuang, capital of north China's Hebie Province, Jan. 20, 2014. China's consumer price index (CPI), a main gauge of inflation, rose 2.5 percent year on year in January, the same as the previous month, the National Bureau of Statistics (NBS) said in a statement on Feb. 14. [Photo: Xinhua/Mo Yu]

New data shows that China's non-manufacturing purchasing managers' index or PMI dropped to 55 points in June from a six-month high of 55.5 in May.

Deputy Head of the China Federation of Logistics and Purchasing, Cai Jin, says it's an active trend and needs to be monitored closely.

"The non-manufacturing PMI is 55 percent in June which is a relatively high level, showing the non-manufacturing economy, especially the market running, is in an active trend. The index shows an accelerating rebound in prices, so a closer monitoring is needed to avoid a new round of inflationary pressure."

The non-manufacturing PMI tracks activity in sectors including construction, software, aviation, rail transportation and real estate.

Readings above 50 indicate expansion.

Earlier this week, the National Bureau of Statistics announced that China's manufacturing PMI rose in June to a six-month high of 51 points.