China faces a pivotal moment as its factory activity contracts to a six-month low. The official manufacturing purchasing managers index slipped to 49, below economists' expectations. This downturn, mirroring June's reading, raises concerns about the nation's economic trajectory.
Despite this, non-manufacturing activity witnessed a modest uptick to 50.4, driven by the construction sector's expansion amid intensified government-led infrastructure investment. However, services activity lags, maintaining a contractionary stance at 49.3.
A reading above 50 implies expansion, while below signifies contraction. December's figures underscore weaknesses in China's economic recovery, prompting heightened pressure on fiscal and monetary policymakers to take decisive action. (Brrrrrrrrrrrrr)