vs. expected 51.7 and prior of 51.5
In really brief, some highlights lowlights:
New orders and output growth both slow from November Employment down marginally Average selling prices decline despite rising input pricesFrom the report, in summary.
The manufacturing sector continued to expand for the third consecutive month, with the PMI at 50.5 (above the neutral 50.0 mark) but down from 51.5 in November, indicating a marginal growth rate.
Production and Orders:
Production increased for the 14th consecutive month, but the growth rate slowed.New orders rose for the third month, driven by domestic demand, while export orders declined after strong growth in November.Employment levels declined for the fourth month, though at a softer pace.Purchasing activity and stocks of raw materials increased as some manufacturers built safety stocks.Post-production inventories grew for the seventh consecutive month, but at a slower pace due to softer production growth.
Price Trends:
Selling prices fell for the first time since September as manufacturers absorbed cost increases to support sales.Input prices continued to rise, while export charges also declined.Backlogs of work rose due to new orders but at a marginal pace, reflecting reduced capacity pressures.
Business Confidence:
Business optimism weakened to its lowest since September, with concerns about trade tensions (e.g., U.S. tariffs) and growth outlooks affecting expectations for 2025.***
ICYMI - Why does China have two sets of PMIs and why are both valuable?
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Caixin China General Manufacturing PMI:
August 2024: Rose to 50.4, signaling a return to expansionary territory and market improvement.
October 2024: Increased to 50.3, indicating a return to expansion, supported by renewed growth in output and new orders.
NBS Manufacturing PMI:
August 2024: Improved to 49.8, showing a softening contraction in factory activity.
October 2024: Increased to 50.1, surpassing the threshold for expansion for the first time since May.
December 2024: Slightly decreased to 50.1, indicating minimal growth in manufacturing activity.
China official National Bureau of Statistics (NBS) December 2024 PMIs - why the long face?
Comparison:
Magnitude of Change: The Caixin PMI often exhibited more pronounced fluctuations, possibly due to its focus on smaller, private firms, compared to the NBS PMI's broader scope, including larger state-owned enterprises.
Expansion and Contraction Signals: Both PMIs indicated periods of contraction and expansion, with the Caixin PMI showing a quicker return to expansion in October, while the NBS PMI indicated expansion starting in October as well.
This article was written by Eamonn Sheridan at www.forexlive.com. Read More Details
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