PMI drop indicates further slowdown

China needs to loosen policies to maintain growth, analysts say

BEIJING / SHANGHAI - China's manufacturing sector shrank in November for the first time in nearly three years, a fresh sign of a further economic slowdown that analysts say may prompt the country to loosen monetary policies.

The purchasing managers' index (PMI), a main gauge of manufacturing activity, tumbled to 49 from 50.4 in October, according to the China Federation of Logistics and Purchasing.