CHINA’S service sector performed at its best in six months in May as the economy stabilized, a survey showed yesterday.

The official non-manufacturing Purchasing Managers’ Index, a gauge of service vitality weighted over state-owned enterprises, rose to 55.5 last month, according to the National Bureau of Statistics and the China Federation of Logistics and Purchasing.

A reading above 50 means expansion. The figure in May, which was up from 54.8 in April, marked the second straight month of faster growth.

The index tracks activity in non-manufacturing sectors such as construction, software, aviation, railway and real estate.

The components showed that new orders rose 1.9 points to an eight-month high of 52.7. Business expectations recorded 60.7, reflecting positive sentiment among service providers over the next three months. The price index read 49, still in the contraction area after falling from 49.4 in April.

Lu Zhengwei, chief economist at the Industrial Bank, said the data added new evidence of a stabilizing economy.

“China has shown signs of a stronger performance,” Lu said. “It is based on China’s recent pro-growth efforts, and we expect the trend will continue with policies spread into more sectors.”

To bolster growth while maintaining reforms, China has let rural banks keep smaller amount of money as reserves and accelerated the construction of railways. It also cut red tape to support trade growth.

On Friday, the State Council, China’s Cabinet, unveiled additional easing measures such as faster loan approvals, more credit to key investment projects and further cuts in administrative fees and surcharges to trim the burden on companies.