The purchasing managers' index (PMI) for China's non-manufacturing sector came in at 49.5 in November, down 0.6 percentage points from the previous month, official data showed Sunday.
A reading above 50 indicates expansion, while a reading below 50 reflects contraction.
The service sector, influenced by the fading effect of the holiday season, saw its business activity index fall to 49.5, a decrease of 0.7 percentage points from October, according to the National Bureau of Statistics (NBS).
Railway transportation, telecommunications and broadcasting, and monetary and financial services maintained strong growth, with their activity indices staying above 55.
The business expectation index for the service sector, although dipping slightly by 0.2 percentage points, stayed at a relatively high level of 55.9, indicating sustained optimism among service firms about future market prospects, according to the NBS.
In a positive shift, construction activity showed signs of recovery. The business activity index for the construction sector rose to 49.6 in November, up by 0.5 percentage points from the previous month.
NBS data showed Sunday that the PMI for China's manufacturing sector stood at 49.2 in November, up 0.2 percentage points from the previous month.