China manufacturing activity grows less than expected in Dec- Caixin PMI
2025.01.01 21:33
Investing.com– Chinese manufacturing activity grew less than expected in December, private purchasing managers index data showed on Thursday, as a boost from recent stimulus measures now appeared to be petering out.
The grew 50.5 in December, compared to expectations of 51.6 and the prior month’s reading of 51.5. The reading slowed from the prior month amid falling export orders and cooling business optimism over China’s economic prospects.
The Caixin data comes just days after data showed the manufacturing sector expanded in December, but at a slightly slower than expected pace.
The Caixin reading differs from the official reading in its scope, wherein the government survey focuses more on larger, state-run enterprises in the north, while the Caixin data covers smaller private companies in the south. Investors usually use both readings to gain a broader picture of the Chinese economy.
While Beijing did dole out a slew of major stimulus measures since late-September, the government held off on announcing any targeted fiscal measures, likely in anticipation of more clarity on U.S. trade policies under incoming President Donald Trump.
Trump has vowed to impose steep trade tariffs on China, which could bode poorly for the world’s second-largest economy as it struggles to shore up growth. Beijing is also expected to introduce retaliatory measures, sparking a renewed trade war with Washington.
Still, the Chinese government is expected to dole out stronger stimulus measures in the face of increased trade headwinds.
