FOREIGN direct investment in Shanghai grew 2.3 percent from a year earlier to US$880 million in February, moderating from the pace of 5.5 percent a month earlier, the Shanghai Statistics Bureau said.

Contracted foreign investment rose 6.7 percent to US$1.12 billion last month, while contracted funds channeled into the local services sector surged 20.1 percent to US$1.01 billion, or 90 percent of total value.

The manufacturing sector lost favor with foreign investors as contracted capital dropped 49.1 percent on an annual basis to US$104 million.