China's non-manufacturing sector contracted in November, according to data released Saturday, as Beijing begins to ease its monetary policy amid signs of a slowdown in the world's second largest economy.

The Purchasing Managers' Index fell to 49.7 last month, a fall of eight points from October, the China Federation of Logistics and Purchasing said.

A reading above 50 indicates the sector is expanding, while a reading below 50 suggests a contraction.

The non-manufacturing sector includes transport, property, retail, catering and the software industry, among others.

The data follows figures released Thursday showing China's manufacturing activity contracted in November for the first time in 33 months, as exporters are hit by slowing demand due to the eurozone debt crisis and US economic woes.

New orders in the non-manufacturing sector fell to 47.2 in November, down 5.3 points over the month, according to data from the federation based on a survey of about 1,200 companies in 20 industries, Xinhua news agency reported.

"Less active consumption in the off-season and the sluggish demand in the construction sector combined to weigh down the index," federation vice president Cai Jin was quoted as saying.

The slowdown in exports and economic growth, which eased to an annual 9.1 percent in the third quarter from 10.4 percent last year, has led the government to begin an easing of monetary policy, which had been focused on fighting inflation.

China's central bank on Wednesday announced the first cut in bank reserve requirements in almost three years to help boost lending and spur growth to counter alarming signs of a domestic slowdown and the crisis in key export markets.

Analysts had forecast such a move after the central bank said recently it would "fine-tune" monetary policy amid growing concerns that the weak global economy is increasing the risk of a sharp slowdown in China.

China, anxious about rising living costs, has pulled on a variety of levers to curb price rises in the past two years, including hiking interest rates five times since October 2010.

Strikers clash with police in Shanghai: rights group
Shanghai (AFP) Dec 2, 2011 - More than 1,000 workers at a plant in China's commercial hub Shanghai went on strike for at least two days, some clashing with police, to protest staff being laid off, a rights group said Friday.

Several workers were injured in conflicts with police at the factory, owned by a Singapore electronics firm that supplies companies including Apple and computer maker Hewlett Packard, US-based China Labor Watch said in a statement.

The protest -- the latest in a spate of unrest in China as an increasingly demanding workforce faces off with employers struggling with high costs and falling exports -- broke out Wednesday after the company laid off about 1,000 people.

Staff claimed they lost their jobs without notice and were given inadequate compensation, China Labor Watch said. The workers were laid off because the company planned to move production elsewhere.

The strike appeared to be continuing Friday, with more than 50 workers wearing blue uniform jackets standing inside the factory as police in two vehicles looked on.

The factory's owner, Singapore-based Hi-P International, told AFP the impact of the strike was "very minimal" and said it was "working with the relevant authorities."

Shanghai police could not be reached for comment Friday. A police statement Thursday put the number of strikers at over 100 and said they blocked the gate of the factory -- which makes home appliances -- and disrupted production.

The factory's lease would end in the first half of next year and workers were unhappy with severance pay, it said.

Hi-P International manufactures for the telecommunications, consumer electronics and computing industries, according to its website.

The unrest comes as China's exports and manufacturing activity weaken, hit by falling demand due to economic woes in Europe and the United States -- both crucial markets for the export-driven economy.

Last month, more than 7,000 workers went on strike at a factory in the southern province of Guangdong making New Balance, Adidas and Nike shoes, clashing with police in a protest over layoffs and wage cuts.

Also last month, hundreds of female workers walked off the job at a bra factory in the southern city of Shenzhen, the manufacturing metropolis that borders Hong Kong, to demand overtime payments.