PMI for production declines in December

THE purchasing managers’ index for China’s manufacturing sector was 49 in December, down from 49.4 the previous month, according to National Bureau of Statistics data yesterday.

A reading above 50 indicates expansion, while a reading below 50 reflects contraction.

The sub-index for large enterprises was 50 in December, a 0.5 decrease from the previous month. Meanwhile, the sub-index for production was 50.2, also down 0.5 from the previous month.

Manufacturing firms maintained consistent market expansion optimism, with the sub-index for production and business forecasts standing at 55.9, up 0.1 from November and continuing the expansion momentum for the sixth straight month.

According to the NBS, as the New Year holidays approach, companies are bolstering their confidence in the production and business operations involving consumer goods, such as farm produce, food and drinks.

In response to the PMI data, NBS senior statistician Zhao Qinghe remarked that complexities, severity and uncertainties in the external environment are increasing, with a drop in overseas orders and a shortage of domestic demand posing challenges for Chinese companies.

Statistics also revealed that non-manufacturing activity expanded at a faster pace in December, with the PMI for this sector climbing 0.2 from November to 50.4.

The service sector sub-index stood at 49.3, unchanged from the previous month.

Business activities in sectors such as postal, telecommunications and financial services expanded steadily in December, with their respective sub-indexes exceeding 55, data showed.

In December, enterprises became more confident in the service sector’s recovery, with the sector’s sub-index for business expectations edging up 0.1 from the previous month to 59.4.

(Xinhua)