China's service sector expanded at a reduced pace in June, according to a private-sector survey released on Friday.

The data indicates that growth in new domestic business orders softened, signaling continued fragility in internal consumer demand despite the broader expansion of the sector.

The slowdown in domestic activity contrasts sharply with a surge in external demand.

Overseas orders for services rose at the fastest rate in 20 months, suggesting that international clients are increasingly turning to Chinese providers even as local spending remains subdued.

This divergence highlights the uneven nature of the country's economic recovery.

The services data follows a positive reading from the official manufacturing sector, which returned to growth territory in June with a PMI of 50.3, up from 50.0 in May.