(Yicai Global) Nov. 30 -- China’s two purchasing managers indexes for factories and non-manufacturing fields fell to the lowest levels in seven months in November amid declining demand and Covid-19 outbreaks.

The PMI for manufacturing slid by 1.2 points to 48 from October, remaining in contraction territory for the second straight month while indicating intensified downward pressures, per the National Bureau of Statistics. A reading below 50 marks contraction.

The corresponding index for non-manufacturing sectors, including finance, catering, and agriculture, dropped by two points to 46.7.

The prosperity index of China’s economy declined in general due to multiple factors such as frequent Covid-19 outbreaks in many regions and the increasingly complex and gloomy global environment, said Zhao Qinghe, senior statistician at the NBS' Service Industry Research Center. New Covid-19 outbreaks hurt some companies’ production and operations, so production was slowed and new orders declined, he added.

Sub-indexes prove the senior statistician's point as the gauge for production dropped to 47.8, down from 49.6. The sub-index for new orders slipped 1.7 points to 46.4. That for new export orders was 46.7, down from 47.6. Manufacturers' domestic and overseas demand reduced, Zhao explained.

Prices of products leaving factories declined. The ex-factory price index fell by 1.3 points to 47.4, indicating continuous price decreases. Moreover, the sub-index for major raw materials’ purchase prices recorded 50.7 percent, a drop of 2.6 points, as commodity price hikes narrowed.

Manufacturers' expectations are generally subdued. But some segments continue expanding such as food processing, alcoholic drinks, tea products, pharmaceuticals, and electrical and mechanical equipment.

The service sector was soft amid the spread of the novel coronavirus in some regions. The related business activity index fell by 1.9 points to 45.1. Business activity in some 15 out of the 21 polled sectors was shrinking, including road and air transport, hospitality, catering, culture, as well as sports and entertainment, as regional pandemic control and prevention measures restrict mobility.

However, some sectors were rising amid the annual Double-11 shopping festival. Booming express delivery lifted the business activity index in postal service to 55.4. Meanwhile, the gauges for financial services and insurance exceeded 57 points. The construction field logged 55.4 points, remaining in expansion territory for the sixth straight month.

Editor: Emmi Laine, Xiao Yi