Factories in China unexpectedly accelerated their activity in December despite Covid-19 outbreaks and a slowing economy, according to an official survey released on Friday.
The official manufacturing Purchasing Manager’s Index (PMI) rose to 50.3 in December from 50.1 in November, data from the National Bureau of Statistics (NBS) showed.
Analysts had expected it to fall slightly to the 50-point mark, which separates growth from contraction.
“It shows that the country’s economy as a whole has maintained a recovery trend, and the level of prosperity has recovered steadily,” said Zhao Qinghe, senior statistician at the NBS.
The world’s second-largest economy, which staged an impressive rebound from last year’s pandemic slump, has lost momentum as it grapples with a slowing manufacturing sector, debt problems in the property market and small-scale Covid-19 outbreaks.
However the NBS said the manufacturing sector appeared to have shrugged off its current obstacles.
“The prices of some commodities have fallen significantly, the pressure on corporate costs has eased, and the level of manufacturing has rebounded for two consecutive months,” Zhao added.
- George Russell
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