China's financial information provider Caixin announced that the Caixin Manufacturing Purchasing Managers' Index (PMI) for December last year recorded 50.5, down from 51.5 in the previous month. Although it continued the expansion phase for three consecutive months, demand was sluggish due to a decline in exports, and employment contracted.
According to Caixin on the 2nd, the manufacturing PMI for December last year was 50.5, below both the previous month and Reuters' market forecast of 51.7.
Earlier, on the 31st of last month, the National Bureau of Statistics of China announced that the manufacturing PMI for December last year (50.1) also maintained an expansion phase but slowed down.
The PMI statistics, based on surveys of corporate purchasing managers, serve as an indicator of economic trends. A reading above the baseline of 50 indicates economic expansion, while below 50 indicates contraction.
The survey showed that uncertainty about global trade and the economy increased, leading to a renewed decline in export demand. The decrease in export orders was mainly concentrated in the investment goods and intermediate goods sectors, while export orders for consumer goods increased. Manufacturers remained cautious about hiring, continuing the downward trend in employment.
Companies participating in the survey expressed concerns about the economic recovery outlook and the imminent US-China trade war.
Bloomberg noted that the survey results reflect uncertainty regarding the inauguration of US President-elect Donald Trump on the 20th. Trump's policy of imposing high tariffs could negatively impact exports, which are a key growth driver for China.
Wang Zhe, a Caixin analyst, stated, "The external environment is expected to become more complex this year, requiring early policy implementation and immediate response," adding, "Government efforts are needed to increase household income and improve livelihoods."
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