China's Manufacturing PMI Edged Lower, Signaling Continued Weakness -- Update

An official gauge of China's manufacturing activity indicated contraction for a second consecutive month in November, signaling continued weakness in the economy despite Beijing's recent efforts to juice up growth amid a protracted housing slump.

China's official manufacturing purchasing managers' index slipped to 49.4 in November from 49.5 in October, the National Bureau of Statistics said Thursday. A reading above 50 indicates an expansion in activity while a reading below it indicates contraction.

The result missed the forecast of 49.8 by a Wall Street Journal poll of economists.

The production subindex declined to 50.7 in November from 50.9 in October. The index for total new orders fell to 49.4 in November, compared with 49.5 in October, while that for new export orders dropped to 46.3 from October's 46.8.

Over 60% of the surveyed manufacturing companies reported insufficient market demand, which remains the primary challenge facing the sector, according to the statistics bureau.

Meanwhile, China's nonmanufacturing PMI, which covers both service and construction activity, fell to 50.2 in November, compared with 50.6 in October, the statistics bureau said.

The subindex tracking service activity declined to 49.3 from 50.1 in October, while the construction subindex climbed to 55.0 in October from 53.5 in November.