Manufacturing sector records record growth in December
Jan 02, 2018, 11:16
This is for the fifth consecutive month that the index has come in above 50-point mark that separates expansion from contraction.
The index in December is on par with the annual average, still pointing to a strong resilience in China's growth, according to NBS senior statistician Zhao Qinghe.
The moderate decline in headline PMI was mainly attributable to the lower inventory, while production growth remained solid despite the "unfavorable working day effect", as there were two fewer working days in December 2017 compared with past year, said a CICC research report. This was consistent with the strongest improvement in the health of the sector since December 2012. That said, the level of business confidence remained below the trend observed for the survey history.
The service sector, which accounted for more than half of the country's gross domestic product, continued steady growth, with the sector's business activity index standing at 53.4 in December, well above the boom-bust line of 50, although declining 0.2 points month on month.
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"Manufacturing operating conditions improved in December, reinforcing the notion that economic growth has stabilized in 2017 and has even performed better than expected", Zhengsheng Zhong, an economist at CEBM Group, said in a statement accompanying Tuesday's release.
However, despite the additional resources, manufacturers' backlogs of work increased for an eighth successive month in December.
The slowdown will continue into 2018 as the government moves forward with its supply-side structural reforms that include curbs on capacity in many industrial sectors.
The research indicates stronger customer demand has led to employment growth surging to a record high, while purchase quantity accelerated to the joint-fastest since February 2011. In turn, new export orders rose at the quickest pace since June.
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