China's non-manufacturing activity grows further (2)

The sub-index for new orders in the construction industry reached 56.7 percent in January, suggesting infrastructure investment will continue to grow, which created conditions for upstream companies to raise prices, according to the statement.

Given the fast rise of prices, Cai Jin, vice chairman of the CFLP, warned of possible cost-driven inflationary pressures in the statement.

In January, business activity in the catering industry saw a sharp drop of 17.3 percentage points from a month earlier, while the new orders index shrank to below 50 percent.

The statement attributed the change to a public response to the central government's calls for a frugal lifestyle, which has led some government organs to reduce extravagance and cut spending in restaurants.

Other sub-indices, such as in-hand orders, employment and business outlook declined from a month earlier, the statement added.

The figures followed Friday's release of the manufacturing sector's PMI, which put the index at 50.4 percent, a sign of steady growth in China's economy.

The CFLP's non-manufacturing PMI is based on a survey of about 1,200 companies in 27 industries, including transportation, real estate, catering and software development.