BEIJING, Aug 5Reuters Growth in China39;s services activity accelerated in July helped by new orders, although momentum in overseas demand eased to its slowest pace in 11 months, a privatesector survey showed on Monday.

The CaixinSP Global services purchasing managers39; index PMI rose to 52.1 from 51.2 in June, pointing to expansion for the 19th straight month. The index covers mostly private and exportoriented companies and the 50mark separates expansion from contraction on a monthly basis.

In contrast, the official services PMI showed the sector stalling in July from growth in June, with retail sales, capital market services and real estate service industries all shrinking.

The world39;s secondbiggest economy grew much more slowly than expected in the second quarter and faces deflationary pressures and a protracted property slump, with retail sales growth in June grinding to its weakest pace since early 2023.

The CaixinSP survey showed that the new orders subindex rose to 53.3 in July from 52.1 in June, while the gauge of overseas demand showed the smallest expansion since August 2023.

Service providers grappled with growing costs for raw materials, wages and freight, but employment rose at the fastest pace in 11 months.

The CaixinSP39;s composite PMI, which tracks both the services and manufacturing sectors, eased from June but remained in expansionary territory.

Prices at the composite level remained weak, on the sales front in particular, further squeezing…