As China’s factory activity keeps expanding, manufacturing still faces ‘inadequate demand’
Official manufacturing purchasing managers’ index (PMI) dropped slightly in December, while non-manufacturing PMI saw a significant expansion
A major gauge of China’s factory activity has stayed in expansionary territory for three months in a row, adding momentum to the country’s economic recovery as the external environment is poised to become more fraught in 2025.
The index has stayed above the 50-point threshold since October, signalling expanding economic activity.
A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 signals contraction.
“The combined effects of macroeconomic policies continued to show in December, with the index remaining above the critical threshold for three consecutive months,” said Zhao Qinghe, a senior statistician at the NBS.
He noted in an official statement that, “in key industries, factors such as policies encouraging the replacement of old consumer goods, and the approach of traditional festivals, have accelerated the pace of expansion in related sectors”.
