China's factory activity edged higher in November but remained stuck in contraction for the eighth consecutive month, while services weakened as the boost from earlier holidays faded, according to official data released Sunday.

The manufacturing purchasing managers' index rose to 49.2, up 0.2 points from October , the National Bureau of Statistics said. The figures were in line with economists' expectations in a Reuters poll, but remained below the 50-point mark that separates expansion from contraction.

The non-manufacturing business activity index fell to 49.5, down 0.6 points from October, while the composite PMI output index eased to 49.7, indicating a slight pullback in both manufacturing and services activities.

Supply and demand in manufacturing improved modestly, said Huo Lihu

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