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China's manufacturing activity contracted for the third consecutive month in December 2023, declining more than expected, according to a report by Liangping Gao and Kevin Yao for Reuters.
The official purchasing managers' index (PMI) fell to 49.0 in December from 49.4 the previous month, indicating a contraction in manufacturing activity. I Photo: Yin Jun, China Daily
The official purchasing managers' index (PMI) fell to 49.0 in December from 49.4 the previous month, indicating a contraction in manufacturing activity. This outcome raises concerns about China's economic recovery and emphasizes the need for potential stimulus measures in the new year.
Despite introducing policies in recent months to support the post-pandemic recovery, the Chinese government faces challenges such as a severe property slump, local government debt risks, and soft global demand.
The struggle to gain economic traction is evident as the world's second-largest economy grapples with ongoing difficulties.
Economists, including Nie Wen from Hwabao Trust, stress the necessity to enhance policy support to counter the trend of slowing growth, anticipating potential interest rate cuts and adjustments to banks' reserve requirement ratios (RRR) in the coming weeks.
