Robotic arms produce robots at a factory of Estun Automation in Nanjing, East China's Jiangsu Province. Photo: VCG

In December, China's manufacturing PMI rose to 50.1, marking the first time since April that it has entered expansion territory. The non-manufacturing business activity index and the composite PMI output index also returned to expansion territory, reflecting an overall recovery in China's economic activity, the National Bureau of Statistics (NBS) said on Wednesday.

A reading above 50 indicates expansion, while a reading below 50 indicates contraction.

According to the NBS, in December the manufacturing PMI rose by 0.9 percentage points from the previous month, exceeding market expectations. Among the 21 industries surveyed, the PMI for 16 industries improved compared to the previous month, indicating better production and operating conditions for the enterprises concerned.

The production index and the new orders index stood at 51.7 and 50.8 respectively, up 1.7 and 1.6 percentage points from the previous month. In particular, the new orders index rose above the 50 threshold for the first time since the second half of the year, indicating a clear expansion at both the production and demand ends of the manufacturing sector, NBS chief statistician Huo Lihui said on Wednesday.

Specifically, the PMI for high-tech manufacturing stood at 52.5, up 2.4 percentage points from the previous month. The PMI for both equipment manufacturing and the consumer goods industry reached 50.4, rising by 0.6 and 1.0 percentage points respectively, according to Huo.

The business activity expectation index stood at 55.5, up 2.4 percentage points from the previous month, indicating that manufacturing enterprises' confidence in market development continued to strengthen, Huo noted.

In December, the non-manufacturing business activity index stood at 50.2, up 0.7 percentage points from the previous month, NBS data showed.

The services business activity index stood at 49.7, up 0.2 percentage points from the previous month. Business activity indices for sectors including telecommunications, broadcasting, television and satellite transmission services, monetary and financial services, and capital market services were all above 60.0, in the high-prosperity territory, indicating relatively rapid growth in business volume, Huo said.

In December, the services business activity expectation index stood at 56.4, up 0.5 percentage points from the previous month, indicating that services enterprises' confidence in future market development strengthened, Huo added.

In December, the composite PMI output index came in at 50.7, up 1.0 percentage point from the previous month, indicating that overall production and business activities of Chinese enterprises expanded, Huo noted.

Global Times