EARLIER this year, we noted that China's output of services was poised to overtake its industrial production, probably as soon as this year. That would represent an interesting milestone for China's economy, which is renowned for the hum of its assembly lines, the belch of its smokestacks and the clang of its construction sites. Today's GDP report brings that crossover even closer. In the past four quarters (running from the second quarter of 2012 to the first quarter of 2013), services and industry accounted for the same amount of China's GDP (see chart)*. Indeed, services trumped industry in each of the past three quarters. That hasn't happened since 1961, as far as I can tell.

I should point out that China's service sector (which includes transport, wholesaling, retailing, hotels, catering, finance, and real estate among other things) is still unusually small. In other economies at China's stage of development, services typically account for about 55-60% of GDP. Prices for services have also been rising faster than industrial prices, contributing to the shift in their favour.

I should also point out that both sectors are highly seasonal, with services typically peaking in the first quarter and industry peaking in the second. So industry (which includes construction, mining and utilities, as well as manufacturing) may bounce back in April, May and June. Nonetheless, the industrial eclipse is edging a little closer. China's collars are turning white.

* To be spuriously precise, services accounted for 44.99% and industry 45.02%.