China’s economic activity slowed modestly in December, new data shows

China’s official manufacturing purchasing managers’ index (PMI) fell to 51.9 in December from 52.1 in November

The official non-manufacturing PMI, which measures sentiment in the service and construction sectors, fell to 55.7 from 56.4

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China’s official non-manufacturing purchasing managers’ index (PMI), which measures sentiment in the service and construction sectors, fell to 55.7 last month. Photo: EPA-EFE

Published: 9:07am, 31 Dec 2020Updated: 11:25pm, 31 Dec 2020

China’s economy activity slowed modestly in December, led by declines in the manufacturing and services sectors, but remained relatively strong, according to new sentiment data released on Thursday.

Seasonal factors, including power blackouts across the country, likely contributed to the decline in the December data, but the drop may also indicate that Chinese growth is starting to plateau, some analysts said. Sentiment could fall further in the coming months, particularly given the impact of the Lunar New Year holiday in mid-February, they added.

The official manufacturing purchasing managers’ index (PMI) – a survey of sentiment among factory owners in the world’s second-largest economy – fell to 51.9 last month from 52.1 in November, according to the National Bureau of Statistics (NBS). December’s reading was below the median prediction of a poll of analysts conducted by Bloomberg, which expected a smaller drop to 52.0.

China’s non-manufacturing PMI – a gauge of sentiment in the services and construction sectors – fell to 55.7, below November’s reading of 56.4. Analysts had forecast the figure to drop slightly to 56.3.

A reading above 50.0 indicates growth in sector activity, while a reading below represents contraction.

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