A number above 50 indicates expansion, while a figure below that points to contraction.
The Caixin China General Service PMI rose to 54.7 at the beginning of the year from 53.9 in December, according to the survey conducted by financial information service provider Markit and sponsored by Caixin Media.
"Indeed, activity rose at a faster pace amid a stronger expansion in new business inflows". So they will be heartened to see an index measuring prices charged leapt to 54.8 from December's 53.2, its highest since April 2011.Higher energy prices proved a drag on retail sales across the bloc in December, which slipped 1.1 per cent month-on-month. "Demand for transport and communication services was down for the second straight month".
"The softer service sector growth follows news of the manufacturing upturn losing momentum at the start of the year and a near-stagnant construction sector", said Chris Williamson, economist at IHS Markit.
January survey data signalled accelerated rates of activity growth across both the manufacturing and service sectors in China.
"Looking forward, we should watch for stability of demand in the manufacturing industry and the impact of growing costs on the profitability of service providers", he said.
Employment data continued to signal divergent trends, with rising headcounts at services companies contrasting with further job cuts at manufacturers.
United Kingdom stocks tumbled on Monday as a strong U.S.jobs report reinforced the Fed's outlook for three interest-rate hikes this year and investors looked ahead to a new round of talks between the United Kingdom and European Union starting Tuesday.
On the price front, input price inflation remained sharp in January, but the rise in costs was the smallest since September 2016.
"The January PMIs so far suggest the adjustment in the housing sector persisted into January while more of the demand was coming from external sources rather than domestic, all suggesting no reason the Services PMI should outperform the softer January data".
As was the case with the service sector, firms retained positive projections for output over the next 12 months, but the level of confidence remained weak by historical standards.
"Brexit blame has emerged once again as the reason for the slowdown in growth of services activity.as consumers reined in spending and displayed anxieties about the future", said Duncan Brock of the Chartered Institute of Procurement & Supply.