Manufacturing activity in China grows less than expected in December – Caixin PMI By Investing.com
Investing.com– China’s manufacturing activity rose less than expected in December, private purchasing managers’ index data showed on Thursday, as the boost from recent stimulus measures now appears to be fading.
It rose to 50.5 in December, compared with expectations of 51.6 and the previous month’s reading of 51.5. The reading slowed from the previous month as export orders fell and business optimism about China’s economic outlook cooled.
The Caixin data comes just days after data showed the manufacturing sector expanded in December, but somewhat more slowly than expected.
Caixin’s reading differs from the official reading in its scope, with the government’s survey focusing more on larger, state-owned enterprises in the north, while Caixin’s data covers smaller private companies in the south. Investors typically use both readings to get a bigger picture of China’s economy.
Although Beijing has enacted a series of major stimulus measures since late September, the government has held off on announcing any targeted fiscal measures, likely in anticipation of more clarity on US trade policy under President-elect Donald Trump.
Trump has vowed to impose harsh trade tariffs on China, which could be bad for the world’s second-largest economy as it struggles to maintain growth. Beijing is also expected to introduce retaliatory measures, sparking a renewed trade war with Washington.
However, the Chinese government is expected to introduce stronger stimulus measures in the face of increased trade barriers.
