Chinese services sector recorded the fastest expansion since August last year in retailing and construction support to Chinese government, adding to signs that the world’s second largest economy is witnessing an accelerated recovery.

Non-manufacturing Purchasing Mangers` Index (PMI) - based on surveys from purchasing manager of 1,200 companies in 27 industries - showed a widening expansion to 56.2 in January from 56.1 in December. Reading above 50 indicates expansion and below it a contraction.

Services industries, which contributed with 45% of the GDP last year, showed an improvement last month on advance in retailing and construction. 

PMI manufacturing released on Feb.1 showed a narrowing expansion to 50.4 in January from 50.6 a month earlier.

China`s economic performance improved during the recent period, boosting optimistic outlook among investors around the world, as its expected to see further signs of recovery during the period ahead.

Chinese growth may slow during the first quarter of the year in response to the montary easing lessening effect, while the nation’s consumer prices will accelerate to 3.5% during the second three months of 2013.