China’s economy showed new strength in the second quarter, according to the latest China Beige Book, signaling a sharp reversal from the weakness in the preceding six months. Services and construction helped spur the return to moderate growth, according to the private survey released by the New York-based research group CBB International, which collects anecdotal accounts similar to those in the Federal Reserve Beige Book. "The economy bounced off the lows of the last two quarters, notching an across-the-board improvement," CBB president Leland Miller and chief economist Derek Scissors said in a report. "The rebound constitutes a performance roughly echoing that of a year ago." Services have a chance to hold up over the longer term as a source of sustainable growth that helps continue the economic transition away from the old industrial drivers, according to the report. Though it’s a difficult performance to replicate, more consistent results like that would confirm "China is on the right track" and that services can help support growth as policy makers address excess manufacturing capacity, CBB said.