China: Manufacturing activity highlights decline in December

China's manufacturing activity continued to contract in December, official data showed on Sunday, marking the end of a year in which China's economy struggled to fully recover from the pandemic.

The National Bureau of Statistics (NBS) announced that the Purchasing Managers' Index (PMI), which reflects the health of the industrial sector, reached 49.0 points, compared to 49.4 points in November. Thus, this index recorded a decline for the third month in a row. A number above 50 indicates expansion in manufacturing activity, while a number below indicates contraction. The PMI briefly crossed the 50 mark into positive territory in September, the first since March 2023.

“in December […]The level of vitality of the manufacturing sector has decreased somewhat, BNS said in a press release. The chain must be connected to strict Covid-19 restrictions imposed on December 2022, April 2022, the economic recovery has been entered into by a confidant of consumers and enterprises, a persistent immobilization crisis and a record-breaking image. mi Young. In addition, the global economic slowdown has negatively impacted demand for Chinese products.

Beijing has taken several targeted measures in recent months, including a large issuance of sovereign bonds, to boost infrastructure spending and revive economic activity. However, the results of these policies have been mixed so far, with the PMI moving into positive territory only once over the past nine months.

Despite some encouraging signs, such as China's GDP growing 4.9% in the third quarter, which was above expectations, Beijing is expected to find it difficult to meet its annual growth target of around 5%, the most modest rate in years.