Chinese manufacturing posted a slight rebound in December to enter the expansion territory, to mark the strongest growth in six months.
Source: IHS Markit
MCHI is down 0.97%.
The Purchasing Managers’ Index grew to 50.1 in December from 49.9 in November, marking the best improvement since June. The latest reading breached the 50 threshold which separates expansion from contraction.
The growth was driven mainly by the increase in production during the month, with output growth hitting the fastest in 12 months along with the improved market conditions and strong customer demand.
New work posted marginal gains, while new businesses strained capacity as reflected in the slightly higher growth in work backlogs. Manufacturers also reported staffing concerns during the month.
Business optimism fell to a 20-month low, dragged by the concerns on COVID-19, along with the strained supply chains cited as key challenges for the coming year.