PMI falls to lowest level since Aug

Weakening growth blamed on caution, moderate demand

A worker checks spindles at Jiujiang Xinxing Fiberglass Co Ltd in Jiujiang, Jiangxi province, on Wednesday. The index of new export orders for manufactured products fell to 49.8 in December from 50.6 in November. Liu Haiyan / for China Daily

The December manufacturing Purchasing Managers' Index retreated to 51 from 51.4 in November, the lowest level since August, indicating weaker economic growth momentum amid moderate external demand and entrepreneurs' cautious expectations.

The National Bureau of Statistics and China Federation of Logistics and Purchasing jointly released the December manufacturing PMI on Wednesday.

New export orders for manufacturing products showed a contraction for the first time in five months, according to a PMI sub-index of 49.8 in December, compared with 50.6 in November.

The growth of new orders slowed slightly to 52 from 52.3 from a month earlier.

Another sub-index showing entrepreneurs' production expectations for the coming months dropping to 49.4 from 54.9 over a month suggests that, to some extent, economists are worried about the future macroeconomic environment.

In addition, the sub-index of production output fell to 53.9 in December, down from 54.5 in November, the first drop in the second half of 2013. The iron, steel, nonferrous metals and non-metallic mineral products industries showed sharper production slowdowns.

For the indexes, any reading above 50 means an improving situation from a month earlier, but a figure below 50 means deterioration.

Zhao Qinghe, an economist from the statistics bureau, said the weaker momentum indicated by December's PMI is mainly due to seasonal factors.

"However, the PMI figure still shows expansion in December. Furthermore, it has remained above 50 for 15 consecutive months, which means the general industrial situation is stable," said Zhao.

Chen Zhongtao, an analyst from the China Federation of Logistics and Purchasing, said during the process of accelerating structural rebalancing and controlling overcapacity, the growth rate of manufacturing industries may continue to slow.