China’s Manufacturing Sector Expands for Second Consecutive Month in December

China's factory activity rose for the second consecutive month during December, boosted by an increase in production and export orders.

Arslan Butt•Tuesday, December 31, 2019•1 min read

China's Manufacturing Sector Expands for Second Consecutive Month in December

China’s factory activity rose for the second consecutive month during December, boosted by an increase in production and export orders. According to data released by the National Bureau of Statistics, China’s official PMI stood at 50.2, the same level as in November, but above the 50 threshold indicating expansion.

The figure also beat economists’ forecast which was for a reading of 50.1. Production in the sector grew at the fastest rate seen in more than a year while total new orders also increased. The improvement in China’s manufacturing sector aligns with the general optimism in the markets about the US and China getting ready to sign the phase one trade deal soon.

Meanwhile, the growth in the services sector in China cooled off slightly during December. China’s official services PMI slid to 53.5 in December from 54.4 in November, but remained above the 50-threshold. China’s official composite PMI, which takes into account both the manufacturing and services sectors, declined to 53.4 in December from 53.7 in the previous month.

Following the release of this news, the Chinese yuan has strengthened slightly against the US dollar. At the time of writing, USD/CNH is trading slightly bearish around 6.975.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.