China manufacturing PMI slips to three-year low but services more upbeat

Data released by the National Bureau of Statistics showed China’s manufacturing sector contracted for the fourth month in a row, falling to its lowest level in more than three years.

The official purchasing managers’ index slipped to 49.6 in November, marking its lowest level since August 2012 and falling short of expectations for a reading of 49.8.

It was a brighter picture in terms of non-manufacturing, however, with the services PMI coming in at 53.6 from 53.1 in October.

Michael Hewson, chief market analyst at CMC Markets, said the services figures were “more encouraging given all the positive noises coming out of China during Singles Day at the beginning of November which saw spending records broken".

“It appears that the big Chinese spendathon did have a positive effect on the Chinese economy,” he said.

The Caixin manufacturing PMI, which focuses on small enterprises and has a smaller sample than the official numbers, was also more upbeat.

It rose to 48.6 in November from 48.3m the previous month, compared with expectations for a reading of 48.3.