Chinese economy showing recovery following one-year high in service sector

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The service sector of China, which is world's second largest economy, has reportedly grown at its fastest pace in a year in October, showing signs of recovery in the economy.

The non-manufacturing Purchasing Managers' Index (PMI), which is a key gauge of the sector's health and indicates expansion in a reading above 50, rose to 56.3 in October from 55.4 in September.

According to the BBC, the report comes just days after data showed that China's manufacturing PMI rose to an 18-month high October, adding that the private sector, which includes construction and aviation, accounts for nearly 43 percent of the country's overall economy.

Vice-president of the China Federation of Logistics and Purchasing, Cai Jin, said that the non-manufacturing sector should continue to develop at a stable rate over the next few months, although he added that there still needs to be more market training and promotion to further release the service sector's potential.

The report mentioned that China saw its pace of growth slow in the first two quarters of this year after years of rocketing growth, although recent released data showed that its economy expanded 7.8 percent in the July-to-September quarter from a year earlier, which is an increase from the 7.5 percent growth recorded in the previous three months.