China's official Purchasing Managers Index for its non-manufacturing sector fell to 49.7 in November from 57.7 in the previous month, the China Federation of Logistics and Purchasing said on Saturday. The index suggested China's services sector was weak due to softer consumption patterns and a slowdown in the construction industry in November.
China's factory sector shrank in November in the face of weakening demand both at home and abroad, two surveys showed on Thursday, underlining the central bank's move to cut bank reserve requirements to shore up the economy. "The retail, food and beverage industry-based consumer services were in an off-season, showing a more significant decline," Cai Jin, a vice president with the association, said in a statement.
The 50-point level on the index demarcates expansion from contraction in the sector. The sub-index of new orders in services PMI declined to 47.2 in November from 52.5 in October.
Input prices for the Chinese services sector eased to 54.4 from 55.7 in October, showing inflationary pressures are easing in a broad range of sectors in the world's No 2 economy. The service PMI index is intended to provide a snapshot of conditions in the services sector, which accounts for less than 45 percent of China's economy, much less than in developed countries.
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