Investing.com — China's manufacturing activity grew less than expected in December, as support from recent stimulus measures now appears to be fading, private PMI data showed on Thursday.
The index grew by 50.5 in December, compared to expectations of 51.6 and the previous month's reading of 51.5. The reading slowed from the previous month amid lower export orders and cooling business optimism about China's economic prospects.
Caixin's data comes just days after data showed the manufacturing sector expanded in December, but at a slightly slower pace than expected.
The Caixin reading differs from the official reading in its scope, with the government survey focusing more on larger, state-run companies in the north, while the Caixin data covers smaller private companies in the south. Investors usually use both readings to get a broader picture of the Chinese economy.
While Beijing has distributed a series of major stimulus measures since late September, the government has refrained from announcing any targeted fiscal measures, likely in anticipation of more clarity on US trade policies under incoming President Donald Trump.
Trump has vowed to impose steep trade tariffs on China, which could bode poorly for the world's second-largest economy as it struggles to support growth. Beijing is also expected to take retaliatory measures, sparking a renewed trade war with Washington.
However, the Chinese government is expected to take stronger stimulus measures in the face of increasing trade headwinds.
