Breaking News
Investing Pro 0
Free Webinar - The Role of Psychology in Trading - Thursday, December 8, 2022 | 04:00PM EST Enroll Now

China Manufacturing Momentum Intact Amid Property Slump

Economic Indicators Dec 30, 2021 09:45PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. China Manufacturing Momentum Intact Amid Property Slump

(Bloomberg) -- China’s manufacturing sector continued to expand in December, providing some relief to Beijing as the world’s second-largest economy continues to struggle with a property market slump. 

The official manufacturing purchasing managers’ index rose to 50.3, beating the median estimate of 50, the National Bureau of Statistics said Friday. The non-manufacturing gauge, which measures activity in the construction and services sectors, increased to 52.7, above the consensus forecast. The 50-mark separates expansion from contraction in conditions. 

China’s economy is facing rising pressure on multiple fronts, with policy makers announcing a shift in focus to stabilizing growth next year with “proactive” policies. However, the housing market is still struggling, local government finances are being hit by weak land sales and there has been a series of recent Covid-19 outbreaks, including one which caused authorities to lockdown the city of Xi’an. 

Friday’s data showed China’s economy maintained its recovery trend, Zhao Qinghe, senior statistician at the NBS, said in a statement. The manufacturing PMI climbed for a second straight month as some commodities prices fell significantly and cost pressures of companies eased to some extent, he said. 

However, insufficient demand remains a main problem for manufacturers. More than 39% of the surveyed companies said they face such issues, indicating “the problem of shrinking demand is still prominent,” Zhang Liqun, a researcher with the State Council’s Development Research Center, said in a statement released by the China Federation of Logistics and Purchasing.

New orders remained subdued and new export orders worsened, highlighting the pressure China faces to stabilize trade next year. Construction activity cooled, with the sub-index falling to 56.3 due to cold weather and the approach of holidays, Zhao said. 

The property downturn continues to dampen sentiment and slow down construction activities, and government pressure on local governments to borrow and spend isn’t yet having much effect in boosting investment and construction. 

A set of earliest available indicators tracked by Bloomberg suggested that while the economy remained stable overall, the slumping property sector and slowing external demand are clouding the outlook. 

Other key highlights from the PMI data:

  • Sub-index for manufacturing jobs rose to 49.1; non-manufacturing employment increased to 47.6
  • Price pressures on manufacturers eased in the month with input and output prices falling
  • The sub-indexes tracking large and medium manufacturers picked up, while the sub-index for small enterprises fell

(Updates with details and comment from 5th paragraph.)

©2021 Bloomberg L.P.

China Manufacturing Momentum Intact Amid Property Slump

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email