Official Data: China’s factory activity unexpectedly edged up in December

In the latest report from the Chinese National Bureau of Statistics, the country’s factory activity further improved in December 2021 albeit in a slim margin compared to the previous month. 

The official manufacturing Purchasing Managers’ Index (PMI) rose to 50.3 from 50.1 in November. 

A sub-index for the new order improved slightly to 49.7. However, the new export order shrank further from the previous month to 48.1. Both indicators are in the contraction territory, indicating the fragile demand both locally and overseas. 

China’s Vice Commerce Minister Ren Hongbin expected the PMI to fall to 50.0 in January on the back of strict anti-pollution measures to ensure the high air quality ahead of the Winter Olympics in February.