Manufacturing Sector Activities in China Continue to Grow, albeit at a Slower Pace

According to the National Bureau of Statistics of China, the country's manufacturing sector activities are expected to grow at a slower pace by the end of 2024, while construction and service activities have shown a sharp recovery.

The manufacturing Purchasing Managers' Index (PMI) fell to 50.1 in December from 50.3 in November. This marks the third consecutive month that the manufacturing PMI has remained above the 50 threshold, which separates growth from contraction. However, this value fell short of economists' forecast of 50.2.

The production sub-index decreased from 52.4 in November to 52.1 in December. The total new orders sub-index rose from 50.8 in November to 51.0 in December, while the new export orders sub-index increased from 48.1 in November to 48.3 in December.

The Bureau also reported that the non-manufacturing PMI, which encompasses both services and construction activities, rose from 50.0 in November to 52.2 in December. The services sub-index increased from 50.1 in November to 52.0 in December, and the construction sub-index saw a sharp rise from 49.7 to 53.2.