The NBS Manufacturing PMI eased slightly by -0.2 pts to 50.1 in December, slightly below expectations of 50.3. New orders grew at the fastest pace since April, but the expansion in production eased slightly. However, new export orders remained in contraction.

Employment remained in contraction where it has been since February 2023. Supplier delivery times increased at the strongest rate since August 2023. Producer prices received declined at a stronger rate as input prices fell along with it.

The NBS Non-Manufacturing PMI saw a large increase of 2.2 pts to 52.2 in December, beating expectations of a minor increase to 50.2. Both the services and the construction sectors outperformed expectations with those sub-components jumping 1.9 pts and 3.5 pts respectively.

The expansion in non-manufacturing business activity was the strongest since March as the new order contraction was the weakest since June 2023. Like manufacturing, employment growth remained at weak levels where it has been for some time.

The strong services sector pushed the composite PMI output index up 1.4 pts to 52.2, the highest it has been since March. Based on PMI data, the Chinese expansion in Q4 was the strongest since the March-May period.