China’s Manufacturing Expands for 5th Month Running
Activity at China’s factories slowed in December but still marked the 5th consecutive month of expansion in the latest sign that the world’s #2 economy is stabilizing.
The monthly PMI (purchasing managers’ index) by the Chinese Federation of Logistics and Purchasing was 51.4 in December, the 2nd highest mark in Y 2016. The highest reading was November’s 51.7 — the 1 st time the index had hit that mark since July 2014.
The index is based on a 100-pt scale with the 50-pt mark separating expansion from contraction.
China’s economy has gradually cooled over the past 6 years as Beijing tries to pivot away from heavy reliance on export-based manufacturing and investment toward consumer spending.
The government has supported the manufacturing sector with stimulus measures aimed at shoring up growth, including heavier spending on public infrastructure projects.
Have a terrific New Year.