Manufacturing activity in China slipped in December, but remained well above the level that indicates expansion within the sector.
The CLSA China Purchasing Manager’s Index, a composite indicator of the market, came in at 52.4, down from 53.0 in November, according to CLSA, an investment bank that conducts the survey."Concern about a reaccelerating economy in Beijing will have eased with this latest reading of the PMI. November’s sharp jump to a reading of 53 has been followed by an equally sharp drop back to 52.4.” said CLSA Chief Economist, Dr. Jim Walker. “New export orders bounced back above the 50 boom-bust line but as the U.S. slows sharply we expect that aspect of the PMI to drop and act as a drag on overall orders growth.”
Manufacturing production continued to increase in December, but the rate of growth slowed from November’s four-month high. The domestic market remained the main source of sales growth, as new export orders rose only slightly.
Manufacturing employment rose for the ninth consecutive month, though the increase was only marginal.
Companies continued to pass on a part of their cost increases to customers by slightly raising prices, CLSA said.
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