China: Manufacturing deteriorates in December
January 1, 2014
The Purchasing Managers Index (PMI) fell from 51.4 points in November to 51.0 points in December, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. As a result, December's PMI was the lowest reading in four months and undershot market expectations of a lesser decrease to 51.2 points. Nevertheless, the PMI remains above the 50-point threshold that separates expansion from contraction in the manufacturing sector.
December's figure reflected a broad-based deterioration, with all the sub-categories recording lower readings compared to the previous month. Both employment and production output registered the largest drops. Meanwhile, exports orders recorded their lowest level in five months, whereas input prices - a reliable leading indicator for consumer prices - improved slightly.