China's December Caixin Manufacturing PMI at 49... Contracting for 5 Consecutive Months

[Asia Economy Beijing=Special Correspondent Kim Hyunjung] Due to the spread of COVID-19 and the global economic slowdown, China's private manufacturing sector indicators have failed to escape a contraction phase for five consecutive months.

On the 3rd, the economic media outlet Caixin (財新), compiling data with market research firm IHS Markit, reported that the December Manufacturing Purchasing Managers' Index (PMI) stood at 49. This figure falls short of both the market forecast (49.1) and the previous month's figure (49.4).

[Image source=Reuters Yonhap News]

The PMI, which gauges manufacturing conditions, indicates expansion when above the baseline (50) and contraction when below it. Caixin's manufacturing PMI has remained in contraction territory for five consecutive months since August last year.

Earlier, the National Bureau of Statistics of China released its manufacturing PMI for December at 47.0, down from 48.0 in the previous month. This is not only the lowest level since February 2020 (35.7), when the spread of COVID-19 caused a sharp decline, but also lower than April last year (47.4), when Shanghai was under full lockdown.

The official manufacturing PMI from the National Bureau of Statistics primarily focuses on large state-owned enterprises, whereas Caixin's PMI survey covers export companies and small to medium-sized enterprises.