(MENAFN) China's service sector experienced a notable acceleration in its recovery in July, driven by a surge in domestic demand that invigorated a broad range of industries, from transportation to culture and sports. According to data released by the National Bureau of Statistics (NBS) on Thursday, the service production index rose by 4.8 percent year on year last month, marking a 0.1 percentage point increase from June's growth rate.

The data revealed that the information transmission, software, and IT services sector led the charge with a robust 12.6 percent growth, reflecting significant demand for digital and technological solutions. Leasing and business services followed with a 9 percent increase, while transportation, warehousing, and postal services saw a 5.3 percent rise. The financial sector also showed a solid performance, with its index climbing 5.1 percent.

Further analysis indicated that several industries were thriving, including railway and air transportation, postal services, telecommunications, broadcasting, satellite transmission, and cultural, sports, and entertainment sectors. This widespread prosperity highlights the strength of China's service sector recovery, fueled by a booming holiday travel season and increased consumer spending.

The revival of the service sector has been further supported by a series of policy measures aimed at stimulating service consumption. The State Council's recent guideline aims to further develop consumer services and address the diverse needs of the population. The guidelines include initiatives to enhance domestic services, elderly care, and education, as well as promote new types of consumption such as digital, green, and health services. Notably, by early August, railway passenger trips had already surpassed 600 million, underscoring the significant rebound in travel and related sectors.

MENAFN15082024000045015839ID1108558686