The official Non-Manufacturing Purchasing Managers’ Index (PMI) fell to 52.6 in August from 53.8 in July, according to data from the National Bureau of Statistics.
A reading above the 50 point mark indicates expansion in activity while a reading below indicates contraction.
Domestic flights have been disrupted by COVID outbreaks in popular tourist destinations, including southern Hainan province and the northwest region of Xinjiang, amid the summer vacation, undermining consumer confidence to travel and spend.
China’s official composite PMI, which includes both manufacturing and services, came in at 51.7, down from 52.5 in July.