China’s factory activity grew at its fastest pace in six months in December, driven by production hikes and easing price pressures, but a weaker job market and business confidence added uncertainty, a private survey showed on Tuesday. The Caixin/Markit Manu facturing Purchasing Managers’ Index (PMI) rose to 50.9 in December – its highest level since June. Economists in a Reuters poll had expected the index to rise to 50.0, which separates growth from contraction on a monthly basis, from November’s 49.9.
The relative strength in the Caixin PMI tallies with an official survey released on Friday which showed China’s factory activity edged up. Factory output increased at the fastest pace in a year, the private survey showed, helped by easing price pressures. A gauge of input prices fell to the lowest level since May 2020.
Soaring raw materials prices, which have weighed on manufacturers, have eased recently amid government efforts to increase supply and stabilize prices.
But the survey also showed new export orders fell, albeit at a slower pace, and a gauge for employment continued to contract, hitting the lowest level since February. – CGTN
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