The purchasing managers' index (PMI) for China's manufacturing sector stood at 50.1 in December, up 0.9 percentage points from the previous month, official data showed Wednesday.
A reading above 50 indicates expansion, while a reading below 50 reflects contraction.
The sub-index for production stood at 51.7, up 1.7 percentage points from the previous month. On the demand side, the sub-index for new orders came in at 50.8, up 1.6 percentage points, according to the figures from the China Federation of Logistics and Purchasing (CFLP) and the Service Survey Center of the National Bureau of Statistics (NBS). Notably, the sub-index for new orders has risen above the critical point for the first time since the second half of the year.
The figures indicate a return to the expansion zone following a PMI of 49.6 percent in November.
"Among the 21 industries surveyed, 16 reported an increase in PMI compared to the previous month, indicating an improvement in the production and operation of relevant enterprises. Additionally, driven by the recovery in production and demand of manufacturing industry, corporate procurement activities have accelerated, with this month's procurement volume index returning to the expansion zone," said Huo Lihui, director of the Business Climate Survey Division of the NBS Service Survey Center.
The surveys also recorded increased production in key industries in the moth, with the PMI of high-tech manufacturing reaching 52.5 percent, an increase of 2.4 percentage points from the previous month.
The sub-index for production and operation activity expectations stood at 55.5, up 2.4 percentage points from November, indicating that manufacturing enterprises have grown more confident in recent market developments.
"Supported by a series of major policies, the confidence of enterprises has seen a notable rebound. The sub-index for production and operation activity expectation rose to a relatively good level of 55.5 percent," said He Hui, vice president of the CFLP.
China's manufacturing PMI enters expansion zone in December as confidence rebounds
China's manufacturing PMI enters expansion zone in December as confidence rebounds
