China's service sector activity continued to decline in November for a third successive month, S&P announced in a report published on Monday. The Business Activity Index stayed below the growth line at 46.7 in November, compared to 48.4 in October. China's Caixin Composite Output Index was also down for the third month in a row, landing at 47 in November from 48.3 in October.
"Both supply and demand weakened at a faster pace in the sector due to a spike in Covid infections and subsequent tightening of containment measures," Caixin Insight Group senior economist Wang Zhe said. "The market remained cautiously optimistic. The gauge for expectations for future activity recorded an eight-month low, and was significantly below its long-term average. Entrepreneurs’ concerns stemmed from the direction in which the pandemic was heading, and its impact on the market."
