China’s manufacturing activity contracted again in November while a gauge of the services sector shrank for the first time this year, suggesting softening economic momentum into the final weeks of 2023.
The official manufacturing purchasing managers index fell to 49.4 from 49.5 in October, according to a Thursday statement from the National Bureau of Statistics. That was lower than an estimate of 49.8 in a Bloomberg survey of economists.
The non-manufacturing gauge, which measures activity in the construction and services eased to 50.2 from 50.6 the prior month. Anything above 50 indicates growth, while a level below suggests contraction.
A separate measure of activity in the services sector was 49.3, falling into contraction for the first time this year.
The world’s second-largest economy has been searching for momentum heading into 2024, with the property sector remaining a key threat to growth.
Falling home sales have curbed demand for everything from furniture to decorations and home appliances. The nation’s rebound in services — a key recovery driver earlier this year — has been tapering off. A gloomy job market has also kept consumers cautious about spending more.
The government has in recent months worked to support activity by ramping up bond sales for infrastructure investment. But it takes time for such moves to pass through to the economy. Project construction also tends to slow heading into the winter.
