Overall sales were dampened by falling export orders. Employment levels also declined, as business optimism eased.
China’s manufacturing sector continued to expand in December 2024, but the degrees to which new orders and production rose were softer, Caixin China general manufacturing PMI data show.
Overall sales were dampened by falling export orders.
Employment levels also declined, as business optimism eased.
Manufacturing production in the country increased for a fourteenth successive month in December.
Chinese manufacturers also lowered their selling prices, opting to absorb price increases to support sales, a release from S&P Global Ratings said.
The headline seasonally-adjusted manufacturing PMI fell to 50.5 in December, down from 51.5 in November. Posting above the 50 neutral mark, the latest data signalled that conditions in the manufacturing sector improved for a third consecutive month. The fall in the PMI, however, indicated that the pace of growth eased since November and was marginal overall.
Manufacturing production in the country increased for a fourteenth successive month in December. The rate of expansion decelerated to a marginal pace as new order growth slowed.
While improvements in underlying demand and successful business development efforts led to incoming new orders rising for a third straight month, the rate of growth eased on the back of softening external demand. Export orders contracted in December after increasing at the fastest pace in seven months in November.
Meanwhile, higher new orders led to a third monthly increase in purchasing activity. Stocks of purchases rose in tandem.
Despite higher buying activity, vendor performance improved for the first time since May, albeit only marginally.
Post-production inventory also accumulated in December, rising for a seventh successive month. The rate of expansion eased, however, as production growth slowed.
Rising new orders led to another round of backlog accumulation at the end of year. The rate of accumulation eased to a marginal level, however.
As a result of softening capacity pressure, manufacturing headcounts fell again in December, though at the softest pace in the current four-month sequence.
Average selling prices in China’s manufacturing sector declined in December for the first time since September. Although the rate of decline was modest, this contrasted with another increase in input prices.
Fibre2Fashion News Desk (DS)
