Employment in the sector grew for the first time since January, reported Caixin.
The Caixin China General Services Business Activity Index, which gives an independent snapshot of operating conditions in the services sector, fell to 54 last month from 54.1 in July. The index has been in expansionary territory for four months in a row, though it has come down from a decade-high in June. A number above 50 indicates an expansion in activity, while a figure below that points to a contraction.
The index's performance showed that the sector continued to recover from the fallout of the Covid-19 pandemic as people's spending on services, such as movies, was returning to normal after recent clusters of coronavirus infections were contained.
Service companies remained generally upbeat about the outlook for business over the next 12 months, but the degree of optimism dipped to a three-month low. 'There were also some companies that expect the pandemic to continue to impact their business operations and sales in the months ahead,' IHS Markit said in the statement.