Official data: China's factory activities fell for the third straight month in December
Weak demand remained the biggest hurdle for the Chinese manufacturing sector. A sub-index measuring new orders fell to 48.7 in December.
China's manufacturing activity faced a third consecutive monthly contraction in December, dropping more than anticipated, signalling challenges for the nation's economic rebound.
The official purchasing managers' index (PMI) fell to 49.0 from 49.4 in November, below the growth threshold, prompting calls for increased policy support.
“Analysts expect the central bank to cut interest rates and reserve requirements. With a severe property slump, local debt risks, and soft global demand hindering recovery, the government may focus on fiscal measures,” industry experts added.
The official non-manufacturing index, which measures the health of the service and construction sectors rose to 50.4 in December from 50.2 points the month earlier.
Weak demand remained the biggest hurdle for the Chinese manufacturing sector. A sub-index measuring new orders fell to 48.7 in December. Additionally, new export orders dipped to 45.8 – marking the ninth consecutive month of contraction.