Index points to softness beyond manufacturing

China's non-manufacturing business expanded at a slower pace in May, the second consecutive monthly deceleration, as exports and new orders weakened amid cooling economic growth, providing further warnings to policymakers about the need for more stimulus.

The non-manufacturing sector's purchasing managers' index fell to 55.2 from 56.1 in April and 58 in March, according to a statement released on Sunday by the National Bureau of Statistics and the China Federation of Logistics and Purchasing.

The news followed Friday's release of the May manufacturing-sector PMI, which came in at a five-month low of 50.4.