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2nd LD-Writethru-Economic Watch: China's manufacturing sector continues expansion in December as market sentiment improves

0 Comment(s)Print E-mail Xinhua, December 31, 2024
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BEIJING, Dec. 31 (Xinhua) -- China's manufacturing sector continued to expand in December as market sentiment improved, official data showed Tuesday.

The purchasing managers' index (PMI) for the manufacturing sector was 50.1 in December, down from 50.3 in November but exceeding the boom-bust line of 50 for a third consecutive month, the National Bureau of Statistics (NBS) said.

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

NBS statistician Zhao Qinghe said the steady expansion of the PMI suggested that the combination of macroeconomic policies continued to take effect during the month and China's economic prosperity level continued to rebound and improve.

The data showed that the production and new orders sub-indices came in at 52.1 and 51, respectively. This indicates momentum in the sector's production and market demand.

Driven by the country's consumer goods trade-in program and the upcoming traditional holiday season, the PMI for the consumer goods sector came in at 51.4, up 0.6 points from the previous month, according to the NBS.

The PMI for the equipment manufacturing sector remained above 50 for a fifth straight month, with its December reading at 50.6.

Tuesday's data also showed that the non-manufacturing PMI came in at 52.2 in December, up from 50 in November, while the composite PMI rose to 52.2 from a month ago, indicating accelerated expansion in production and business activities of Chinese enterprises.

The business expectation index for the service sector remained at a high level of 57.6 in December, while that for the construction sector rose for the third consecutive month to reach 57.1, indicating steady improvements in market expectations among relevant enterprises, according to Zhao Qinghe.

China has signaled a stronger macroeconomic policy push for 2025, pledging to adopt a more proactive fiscal policy and a moderately loose monetary policy, strengthening unconventional counter-cyclical adjustments and expanding domestic demand on all fronts, according to crucial meetings convened during the month.

Wang Qing, chief macro analyst at Golden Credit Rating, expected faster implementations of various measures to vigorously boost consumption and stabilize investment early next year, which will support the prosperity of the manufacturing industry due to an emphasis on "a more proactive fiscal policy" in the current context.

Looking ahead, the manufacturing PMI in January is expected to reach a moderate state of prosperity, said Wang. Enditem

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