China’s Manufacturing Sector Expands for Third Straight Month, But at Slower Pace
China’s manufacturing sector expanded in December, marking its third consecutive month of growth, according to purchasing managers index (PMI) data released on Tuesday by the National Bureau of Statistics. The PMI reading was 50.1 in December, down from 50.3 in the prior month and below the 50.3 average forecast.
The data indicates that most major indexes that make up the PMI were above the critical point, with production activities of manufacturing enterprises maintaining a rapid expansion. The country has been implementing a raft of fresh stimulus measures, which have provided support to the sector.
Despite the slower pace of expansion, the data suggests that China’s manufacturing sector is still growing, driven by strong consumption, which extended beyond the manufacturing sector to the services sector, which grew 52.2 in December from 50.8 in the prior month.
The Chinese government has committed to implementing more proactive fiscal stimulus measures and adopting moderately looser monetary policies in 2025, according to a Politburo statement. The government is also expected to roll out more targeted fiscal stimulus in response to potential economic pressure from US President-elect Donald Trump’s threatened import tariffs.
China’s GDP growth is estimated to reach 4.9% for 2024, within its target range of 4.5-5%. The government has also set a target of 5% GDP growth for 2025.