Photo taken on Feb. 23, 2019 shows the scene of job hunting for housekeeping in the family caring center of Fujian Women's Federation in Fuzhou City, southeast China's Fujian Province. (File photo: Xinhua)

A privately surveyed purchasing managers index for China's service sector slid to a three-month low last month, indicating a slower expansion of the sector in January.

The Caixin China General Services PMI, released on Wednesday, fell for the second consecutive month to 51.8 in January versus 52.5 for the month before, as the sector saw a slower increase in new orders and stopped expanding employment in general.

Yet the PMI reading still stood above the boom-or-bust line of 50 that separates expansion from contraction.

"China's economic recovery was not strong enough due to limited improvement in demand, and some companies didn't replenish inventories," said Zhong Zhengsheng, chairman and chief economist at CEBM Group, a Caixin subsidiary. "As the pneumonia epidemic is putting pressure on the economy, policymakers need to make efforts to ensure no major disruptions to improving business confidence."