Investing.com-- China’s manufacturing sector expanded in December but at a slower-than-expected pace, marking its third straight month of expansion as a raft of fresh stimulus measures continue to provide support, purchasing managers index data showed on Tuesday.
Manufacturing PMI was at 50.1 in December, data from the National Bureau of Statistics showed. The reading was below the 50.3 seen in the prior month, and compares with the 50.3 average forecast.
A reading above 50 indicates expansion, with Chinese manufacturing activity now expanding for a third straight month.
Most major indexes that constitute the manufacturing PMI were above the critical point, the survey statement said, adding that the production activities of manufacturing enterprises maintained a rapid expansion.
China has committed to implementing more proactive fiscal stimulus measures and adopting moderately looser monetary policies in 2025, the government signaled during a Politburo.
U.S. President-elect Donald Trump has threatened to impose steep import tariffs against the country when he takes office on January 20- a scenario that could herald more economic pressure.
Beijing is expected to roll out more targeted, fiscal stimulus in response to Trump’s tariffs in the coming year. Recent reports suggested that the country will ramp up fiscal spending to support economic growth.
Strong Chinese consumption extended beyond the manufacturing sector. Non-manufacturing PMI grew 52.2 in July, much above expectations of 50.2 and the previous month's reading of 50.0.
This saw China’s composite PMI expand to 52.2 in December from 50.8 in the prior month.
China’s GDP growth is widely estimated at 4.9% for 2024, within its target range of 4.5-5%. Reports have shown the government is targeting 5% GDP growth for 2025 as well.