China construction and services PMIs rise in December
By Alexander Bueso
Date: Tuesday 31 Dec 2024
(Sharecast News) - Economic activity in China perked up at the end of 2024, the results of three surveys revealed.
The National Bureau of Statistics factory sector Purchasing Managers' Index slipped from a reading of 50.3 for November to 50.1 in December (consensus: 50.3).
Nevertheless, the fact that the PMI remained above the 50 point threshold meant that activity expanded for a third successive month.
A separate PMI for services sector activity meanwhile improved from 50.0 to 52.2 - a nine-month high - and a third for construction from 49.7 to 53.2.
Commenting on the latest data, Gabriel Ng, assistant economist at Capital Economics, noted how a decline in the output subindex had held back the manufacturing PMI.
The rest of components suggested demand for goods was still picking up, although downward pressure on prices appeared to remain, he said.
"Increased policy support towards the end of the year has clearly provided a near-term boost to growth. This is consistent with our expectation for an acceleration in q/q GDP growth this quarter," he added.
"And this improvement should carry over into early 2025. But the boost probably won't last more than a few quarters, with Trump likely to follow through on his tariff threat next year and persistent structural imbalances still weighing on the economy."
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