China factory activity growth accelerates in December amid stronger output, new orders

China’s Caixin/S&P Global manufacturing purchasing managers’ index (PMI) rose to 50.8 in December from 50.7 in November

Caixin PMI contrasts with the official data that showed manufacturing activity shrank at a faster pace and more than expected last month

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China’s Caixin/S&P Global manufacturing purchasing managers’ index (PMI) rose to 50.8 in December from 50.7 in November, data released on Tuesday showed. Photo: Xinhua

Published: 10:03am, 2 Jan 2024

China’s factory activity expanded at a quicker pace in December due to stronger gains in output and new orders, but business confidence for 2024 remained subdued, a private-sector survey showed on Tuesday.

The Caixin/S&P Global manufacturing PMI rose to 50.8 at the end of 2023 from 50.7 in November, marking the fastest expansion in seven months and surpassing analysts’ forecasts of 50.4. The 50-point mark separates growth from contraction.

The sprawling manufacturing sector came under pressure amid weak demand in 2023, with a property downturn, geopolitical factors and tight-fisted consumers all weighing on the post-pandemic recovery.

Chinese top leaders at the end of last year pledged to adjust policy to support an economic recovery in 2024, while markets and investors are waiting for more stimulus measures to be rolled out.

The Caixin PMI contrasted with official data released on Sunday that showed manufacturing activity shrinking at a faster pace and more than expected in December.

Factory output in December rose at the quickest pace since May, while growth in new orders hit a 10-month high thanks to firmer demand and a pick up in customer spending at the year-end, according to the Caixin survey.

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