China growth weakens in car sales, services industry

China's auto sales grew at a slower pace in June and a services-industry index slid to a 15-month low, adding to signs that the economy leading the world recovery is cooling.

Passenger-car purchases rose 10.9 percent from a year earlier, down from May's 25 percent gain, the China Automotive Technology & Research Center said today. The services-industry measure fell to 55.6 from 56.4, HSBC Holdings Plc and Markit Economics said in an e-mailed statement.

Today's data adds to weaker numbers in June for manufacturing indexes and a second measure of the services industry after the government cracked down on property speculation and as the effects of stimulus measures fade. A slowing economy could lead officials to delay returning to pre- crisis policies.

"It looks like growth will slow to 8 percent in the fourth quarter of this year with risks on the downside," said Paul Cavey, an economist with Macquarie Securities Ltd. in Hong Kong. "The government will be worried" at that point and may loosen policies, he added.