Japan February services PMI falls to seven-month low, new business slows

TOKYO, (Reuters) - Activity in Japan's services sector expanded in February at the slowest pace in seven months as new business weakened in a worrying sign that the economy is losing momentum, a survey showed on Thursday.

The Markit/Nikkei Japan Services Purchasing Managers Index (PMI) fell to 51.2 from 52.4 in January on a seasonally adjusted.

The index remained above the 50 threshold that separates expansion from contraction for the 11th consecutive month but fell to the lowest since July last year.

The index for new business fell to 51.7 from 52.2 in the previous month, with the rate of expansion slower than the average seen over the current 11-month spell of growth, the survey showed.

In 2014, services accounted for 65 percent of Japan's gross domestic product, while manufacturing had a 21 percent share.

(Reporting by Stanley White; Editing by Shri Navaratnam)