China Services PMI Slips To 46.7 In November - Caixin

The services sector in China continued to contract in November, and at a faster pace, the latest survey from Caixin said on Monday with a PMI score of 46.7.

That's down from 48.4 in October and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.

Efforts to curb the spread of COVID-19 amid a notable rise in case numbers in recent weeks, weighed on service sector business operations and customer demand across China during November. Total new business fell for the third month running, and at the strongest rate since May, with a number of firms citing reduced client numbers.

In contrast, the amount of export business returned to growth in November, with some firms stating that the relaxation of international travel rules had supported higher export sales. That said, the rate of growth was only fractional as the global economic environment remained challenging.

The survey also showed that the composite PMI fell to 47.0 in November from 48.3 in October.

New business declined at a stronger pace, though mild overall, which was driven by a steeper fall in sales across the service sector. After rising slightly in October, employment fell and at the fastest rate since February 2020. This was due to renewed job losses in the service sector and a quicker fall in manufacturing headcounts.

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