China’s factory activity grew at its fastest pace in six months in December which is primarily driven by production hikes and easing prices pressures. However, a weaker job market and business confidence added uncertainty, a private survey showed on Tuesday.
The Caixin/Markit Manufacturing Purchasing Manager’s Index (PMI) rose to 50.9 in December – its highest level since June. Economists in a Reuters pool had expected the index to rise to 50.0, which separates growth from contraction on a monthly basis, from November’s 49.9.
The Caixin PMI tallies with an official survey released on Friday which showed China’s factory activity edged up.
The private survery showed factory output increased at its fastest pace this year due to easing of price pressures. A guage of input prices fell to the lowest level since May 2020.
