China's factory activity growth unexpectedly slowed in December, raising concerns about the effectiveness of government stimulus measures in reviving the struggling economy.
The country's official purchasing managers' index for December came in at 50.1, data released by the National Bureau of Statistics data showed. The reading missed Reuters' expectations of 50.3. Manufacturing activity came in 50.3 in November and 50.1 in October. China's factory activity growth in December missed analysts' expectations Tuesday, signaling that Beijing's stimulus measures were not sufficient to meaningfully boost the country's ailing economy.
A PMI reading above 50 indicates expansion in activity, while a figure below that points to contraction.Production and new orders for sectors including agricultural and sideline food processing, general equipment and food and beverages rose, the National Bureau of Statistics said. China's non-manufacturing PMI, which measures activity in the services and construction industries, rose to 52.2 in December, compared to 50.0 the month before. Out of the 21 industries surveyed, 17 logged higher activity than the month before, including aviation, transportation and telecommunications. The construction industry also returned to expansion, lifted by upcoming Spring Festival holidays. 'I think one of the reasons last month we had a big swing in the non manufacturing PMI, was partially because construction PMI declined a lot,' said Tommy Xie, head of Asia macro research at OCBC. Investors will also be monitoring the Caixin/S&P Global manufacturing purchasing manager's index slated to release on Thursday. 'For the Chinese economy, the year of 2024 will be remembered as a year of muddle-through,' said Larry Hu, Macquarie Group's chief China economis
CHINA ECONOMY MANUFACTURING PMI STIMULUS MEASURES FACTORY ACTIVITY NON-MANUFACTURING PMI
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