China’s Official PMI Drops To 50.1 In December

China’s official PMI, the bellwether of large industrial firms, declined to 50.1 in December, the lowest level in 2014, higher than the market consensus of 50.0, according to data released by China’s National Bureau of Statistics.

The output sub-index fell by 0.3 percentage points to 52.2, and the new order sub-index declined by 0.5 percentage points to 50.4.

Traditional industrial sector could still be under pressure in 2015, as Chinese authorities will tolerate a slower growth, a massive policy easing is unlikely in the new year, according to a report by ANZ.

"We believe that the investment in manufacturing sector would only see single-digit growth this year, compared with a 13% growth in 2014," says ANZ Greater China chief economist Liu Ligang in the same research report.

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