China’s mfg activity slows in Dec

Hong Kong: China’s factory activity expanded at a slower pace in December, official data showed on Tuesday, despite recent stimulus measures and in the face of increasing trade risks.The Purchasing Managers’ Index, based on a survey of factory managers, slipped to 50.1 in December from 50.3 the previous month, the National Bureau of Statistics said on Tuesday.

It was the third straight monthly reading above 50, a level that indicates an expansion of manufacturing activity. The slowdown in factory activity was due to a “decline in the output component”, according to a note by Capital Economics’ Gabriel Ng. “That said, the output price component fell, suggesting downward pressure on prices remains,” he said.

Overall, new orders rose to an eight-month high, while the exports order index rose to the highest level in four months, likely helped by US importers rushing to beat higher tariffs that incoming US President Donald Trump may impose on Chinese goods, Ng said.