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China’s manufacturing activity grew less than expected in December, private purchasing managers’ index data showed on Thursday, as the latest measures appeared to of encouragement continues.
The figure increased to 50.5 in December, compared to expectations of 51.6 and last month’s figure of 51.5. The reading declined from last month due to a slump in export orders and cooling business confidence about China’s economic prospects.
Caixin’s data comes just days after data showed the manufacturing sector expanded in December, but at a slower pace than expected.
Caixin’s reading differs from the official reading in its region, where the government’s analysis focuses on large, state-run enterprises in the north, while Caixin’s data covers small private companies in the south. Investors often use both figures to get a broader picture of China’s economy.
While Beijing has offered several stimulus measures since late September, the government has stopped short of announcing any planned fiscal measures, perhaps in anticipation of a clearer outlook on US trade policies under President come Donald Trump.
Trump has vowed to impose higher trade tariffs on China, which could spell trouble for the world’s second-largest economy as it struggles to boost growth. Beijing is also expected to introduce retaliatory measures, triggering a renewed trade war with Washington.
However, the Chinese government is expected to offer strong stimulus measures in the face of growing trade winds.
