‘China factory activity growth hastened in December’

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 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. While factory owners continued to hold an optimistic view on 2024 outlook, their confidence edged down from November and remained below the series’ long run trend.

They said squeezed customer budgets, tough competition and concerns over sluggish markets were among key concerns. COMMents SHARE Copy link Email Facebook Twitter Telegram LinkedIn WhatsApp Reddit China.