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China’s Official December PMI Numbers Continued Falling

China’s National Bureau of Statistics just released its official PMI numbers for December. Affected by factors such as the impact of Covid-19, China’s purchasing managers’ index (PMI) has declined from the previous month. Among them, the manufacturing purchasing managers’ index, non-manufacturing business activity index and comprehensive PMI output index were 47.0 percent, 41.6 percent and 42.6 percent, respectively. The overall level of prosperity of the Chinese economy has declined. The December Manufacturing PMI fell one percentage point from November. Detailed data showed that both the supply and demand sides have declined. A number of price indices have rebounded. The employment index continued to go down. Affected by Covid, the employee attendance rate of manufacturing enterprises is obviously insufficient. PMI sub-indices of people’s livelihood-related industries continue to expand. In December, the non-manufacturing business activity index was 41.6 percent, down 5.1 percentage points from the previous month and the level of non-manufacturing prosperity continued to fall. The level of prosperity in the service industry has fallen. In December, companies surveyed in the service industry reported that the major impact of Covid had reached 61.3 percent, which was 10 percent higher than it was in the previous month. The market activity of the service industry dropped significantly. Of the 21 categories surveyed, 15 are in contraction territory. Only the construction industry stayed above the expansion line. The construction industry business activity index was 54.4 percent, one percentage lower than November.

Sources:

(1) National Bureau of Statistics, December 31, 2022
http://www.stats.gov.cn/tjsj/zxfb/202212/t20221230_1891388.html

(2) China Net Financial News, December 31, 2022
http://m.gxfin.com/article/finance/xw/default/2022-12-31/5922783.html