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China manufacturing activity grows at fastest pace in 6 months due to strong supply, demand rebounded
- The Caixin/Markit manufacturing purchasing managers’ index (PMI) rose to 50.9 in December from 49.9 in November
- Last week, China’s official manufacturing purchasing managers’ index (PMI) rose to 50.3 in December, up from 50.1 in November
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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 manufacturing 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.
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The relative strength in the Caixin PMI tallies with an official survey released on Friday which showed China’s factory activity edged up.
“The latest surveys suggest that the pace of industrial growth picked up by more than expected last month. This was largely thanks to improving supply chain conditions and lower raw material prices,” said Sheana Yue, assistant economist at Capital Economics.
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.
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