The growth of China’s non-manufacturing sector slowed in January, as indicated by the decline of the Purchasing Managers Index (PMI), the China Federation of Logistics and Purchasing (CFLP) said on Friday.

The indicator of economic activities in the non-manufacturing sector fell to 52.9 percent in January from 56 percent one month earlier, the CFLP said.

A reading above 50 indicates expansion while a reading below 50 indicates contraction.

“The decline in the index shows that China’s non-manufacturing industries expanded at a slower pace last month, “said Vice Chairman of the CFLP Cai Jin.

A significant fall in the construction activities in the off-season had “weighted ddown the overall growth rate of the index” and countered “the sound development of holiday-related retail sales, catering business and transportation,” he said.

The index came one day after the CFLP released the reading of PMI, a key indicator of nationwide manufacturing activities, which rose slightly to 50.5 percent from the previous month’s 50.3 percent.