BEIJING - The purchasing managers' index (PMI) for China's non-manufacturing sector came in at 49.5 in February, up 0.1 percentage points from the previous month, official data showed Wednesday.

This reflected improved business sentiment in the non-manufacturing sector, according to the National Bureau of Statistics (NBS). A reading above 50 indicates expansion, while a reading below 50 reflects contraction.

The sub-index for business activity in the service sector stood at 49.7 in February, edging up 0.2 percentage points from January, signaling a modest recovery in sector vitality.

Boosted by the Spring Festival holiday, industries including accommodation, catering, culture, sports and entertainment all recorded readings above 60, indicating strong growth in business activity. In contrast, sectors such as capital market services and real estate remained sluggish with low index readings.

The business expectation index for the service sector remained relatively high at 55.8, indicating service sector enterprises maintained an optimistic outlook for near-term market developments.

Construction activity continued to weaken last month, with the business activity index dropping 0.6 percentage points to 48.2, as some construction projects were suspended while workers returned home for the Spring Festival holiday.

The business expectation index for construction stood at 50.9, bouncing back into expansion territory and signaling a pickup in industry confidence.

Separately, the NBS reported that China's manufacturing PMI stood at 49 in February, down 0.3 percentage points from the previous month.