China’s manufacturing conditions fell to a three-month low in December, according to the HSBC Flash China Manufacturing Purchasing Managers’ Index (PMI).
The index dropped to 50.5, from 50.8 in November.
Despite the fall, growth in new orders increased to a nine-month high, while output also increased, albeit at a slower rate. New exports orders rose, at a faster rate. Employment decreased, at a faster rate.
"The December HSBC Flash China Manufacturing PMI reading slowed marginally from November’s reading. But it still stands above the average reading for the third quarter, implying that the recovering trend of the manufacturing sector starting from July still holds up," says Qu Hongbin, chief economist for Greater China at HSBC. "As a result, we expect China’s GDP growth to stabilise at around 7.8% year-on-year in the fourth quarter."
The final December data will be published on 2 January 2014.