China factories cooled in December, as other Asian manufacturing powerhouses surged
- China’s Caixin/Markit manufacturing purchasing managers’ index (PMI) fell to 53.0 in December from 54.9 in November
- In contrast, sentiment in Japan, Taiwan and South Korea improved, suggesting Asia-Pacific may remain an engine for global growth in 2021
China’s manufacturing engine cooled slightly in December, even as various survey data suggested industrial growth in other Asian powerhouse economies hit the highest levels for years.
This was the softest reading in three months and was lower than the median forecast of 54.9 expected by analysts in a survey by Bloomberg. However, it still marked the eighth consecutive month of growth in the sector after it was ravaged by coronavirus lockdowns at the start of the year.
The fall is more significant than the December moderation of the official manufacturing PMI, partly because [small and medium-sized enterprises] may be suffering more from tighter electricity supply in some provinces in South China and partly due to a very high base
“The fall is more significant than the December moderation of the official manufacturing PMI, partly because [small and medium-sized enterprises] may be suffering more from tighter electricity supply in some provinces in South China and partly due to a very high base,” said Nomura’s chief China analyst Lu Ting.