Business activities in both manufacturing and non-manufacturing sectors continued to expand in February, but at slower paces. Experts attributed the slowdown to the Spring Festival holiday (February 9-15), an occasion for family reunions when much of the country is off work.

The purchasing managers' index (PMI) for the manufacturing sector fell for a second month to 50.1 percent in February from 50.4 percent in January, according to the China Federation of Logistics and Purchasing (CFLP).

The PMI stayed above 50 percent for the fifth consecutive month, indicating continued expansion, said the CFLP. A reading above 50 percent indicates expansion, while a reading below 50 percent indicates contraction.

The CFLP said China's industrial production is generally steady at present and companies are relatively optimistic about their future economic prospects.

The PMI of the non-manufacturing sector was 54.5 percent in February, down 1.7 percentage points from January. The figure marked the first decline since October, said the CFLP.