China's official purchasing managers' index pointed to steady growth in manufacturing activity in December, despite a marginal slowdown in production, a survey by the China Federation of Logistics and Purchasing (CFLP) and the National Bureau of Statistics showed Tuesday.
The headline manufacturing purchasing managers' index was at 50.6 in December, matching November's seven-month high. Economists had forecast a marginal increase in the reading to 51.
An index reading above 50 indicates expansion of the sector. The new orders index was unchanged at 51.2.
New export orders fell to 50 in December from 50.2 in the previous month. Likewise, the production index dropped to 52 from 52.5 in November.
The purchasing price index rebounded significantly. The index was 53.3 in December, up by 3.2 points from the previous month.
A survey published by Markit Economics and HSBC showed yesterday that the PMI hit a 19-month high in December. The HSBC manufacturing purchasing managers' index rose to 51.5 from 50.5 in November.
In the September quarter, the gross domestic product grew 7.4 percent, the slowest pace in three years. This was a tad below the government's full-year growth target of 7.5 percent.
Earlier this month, the World Bank said fiscal stimulus and faster implementation of large investment projects will likely boost China's GDP growth to 8.4 percent in 2013. This was higher than the bank's previous forecast of 8.1 percent.
The World Bank projects China's growth to slow to 7.9 percent this year after 9.3 percent expansion in 2011. This is the lowest growth rate since 1999.
by RTT Staff Writer
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