China Manufacturing PMI Falls In December But Stays Above 50
In December 2020, the purchasing managers index (PMI) in the manufacturing sector in China was 51.9, which is 0.2 percentage points lower than the November figure, the State Statistical Office of the PRC said on Thursday.
The PMI index reflects the level of business activity of enterprises. A reading above 50 indicates an expansion of the manufacturing sector, below 50 indicates a contraction.
Manufacturing PMI has been in a growth zone for the 10th consecutive month, signaling that the country's manufacturing sector is continuing its robust recovery, according to data from the State Statistical Office.
In December of this year, the production sub-index was 54.2, which is 0.5 pp. lower than in November, while the new orders index decreased by 0.3 pp. up to 53.6.
Sub-indices for new export orders and imports decreased from 51.5 and 50.9 in November to 51.3 and 50.4, respectively.
Data released on Thursday also shows that China's non-manufacturing PMI stood at 55.7 in December versus 56.4 in November.
Earlier this month, Electricity shortage , which China's main ministry of economic planning, NDRC, attributed to a sharp cold snap and high demand from the manufacturing sector.
Power outages and restrictions on electricity use in some provinces may stifle economic growth.