BEIJING, June 5 Reuters China39;s services activity picked up in May, a privatesector survey showed on Monday, as a rise in new orders shored up a consumptionled economic recovery in the second quarter.

The CaixinSP Global services purchasing managers39; index PMI rose to 57.1 in May from 56.4 in April. The 50point mark separates expansion from contraction in activity.

The reading contrasts with the official PMI released last week that showed a slower pace of expansion in the services sector.

Some economists warn the pentup demand for inperson services may fade due to slowing income growth and mounting unemployment pressures, raising headaches for policymakers already struggling with weak foreign demand and an uneven postCOVID recovery.

The Caixin survey showed service companies reported a rise in new business last month when the first May Day holiday following China39;s COVID reopening boosted orders for hotels, restaurants and travel agencies.

Increased workloads led firms to grow headcount for the fourth consecutive month, although the speed of job creation slowed.

Average prices charged by service companies rose by the fastest since February 2022.

The survey also indicated that capacity pressures persisted, as highlighted by sustained growth in outstanding business.

CaixinSP39;s composite PMI, which includes both manufacturing and services activity, picked up to 55.6 from 53.6 in April, marking the quickest expansion since December 2020.

Even if firms in the…