BEIJING - Business activity in China's service sector eased in November on softened demand, a private survey showed Thursday.

The Caixin China General Services PMI (Purchasing Managers' Index) came in at 51.2 in November, down slightly from 52 in October, according to the survey conducted by financial information service provider Markit and sponsored by Caixin Media Co Ltd.

A reading above 50 indicates expansion, while a reading below 50 represents contraction.

The survey attributed the easing business activity in the service sector to relatively weak market conditions and softened client demand in the latest survey period.

In addition, the Caixin China Composite PMI, which covers both manufacturing and services, climbed to 50.5 in November from October's 49.9, rising over 50 for the first time in four months.

"This shows that the macro economy has moved further toward stable growth and the economic structure is improving. Future fiscal and monetary policies must be coordinated and large-scale stimulus should be avoided as much as possible," said He Fan, chief economist at Caixin Insight Group.

Employment at Chinese service providers continued to increase in November. However, subdued business conditions contributed to softer payroll growth, according to the survey.

The survey said that service sector optimism toward the 12-month business outlook improved only slightly from October's record low, as a number of companies expressed concerns about a challenging economic outlook.