中文
China's manufacturing sector contracted for a third straight month in December as activity weakened more than expected, raising the prospect of further stimulus measures from Beijing.
The official manufacturing Purchasing Managers' Index (PMI) fell to 49.0 last month from 49.4 in November, according to data from the National Bureau of Statistics on December 31, hitting the lowest since July.
The 50-point mark separates expansion from contraction. The figure ended the year with four months in the expansion zone while eight months in the contraction, suggesting the manufacturing sector needs more stimulus policies and measures from the government to get back on track.
The decline from November is mainly seasonally affected, which aligns with the trend in previous years, said Yang Chang, an analyst from Zhongtai Security.
The sub-index for new orders fell from 48.1 in November to 47.9, and that for new export orders slipped from 46.3 to 45.8.
"The decline in new orders indicates a weak demand in the manufacturing sector," said the NBS' Senior Statistician Zhao Qinghe. "In terms of industries, the new order indices for metal products, railway, shipbuilding, aerospace equipment, computer communication, and electronic equipment remain above the 50 point, indicating continued expansion in market demand in these sectors. However, industries such as textile, clothing, chemicals, and non-metallic mineral products have relatively low new order indices, indicating insufficient market demand in these areas."
Sub-index for raw materials purchase prices bucked the trend by rising from 50.7 to 51.5, data showed. That for raw materials inventory reached 47.7, down from 48.0 a month earlier.
"As the destocking movement runs at a faster pace in December, there will be a round of restocking on the cards," said Yang Chang.
The official non-manufacturing PMI, which measures business sentiment in the services and construction sectors, rose from 50.2 in November to 50.4 in December, snapping a decline for two months. The figure has been above the 50-mark for the all year around.
The official composite PMI, which includes both manufacturing and services activity, dropped to 50.3 from 50.4 a month earlier yet still above 50, suggesting China's general corporate operation activity remained in expansion.
(Writing by Alex Guo Editing by Harry Huo)
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