MNI 5 Things: China December Mfg PMI Weakens to Contraction

     BEIJING (MNI) - China's National Bureau of Statistics released

manufacturing and non-manufacturing PMI data on Monday. MNI highlights five

things:

     --Manufacturing PMI dropped to 49.4% in December, falling below the 50

breakeven mark into the contraction territory, missing the forecast of 50.0%

projected by an MNI survey. The outcome was below November's 50.0% and the

lowest since 49.0% in February 2016. The further worsening index showed

manufacturing activities are shrinking.

     --The weakness was mainly due to sluggish demand that discouraged

manufacturers and weakening raw materials purchase prices and ex-factory prices,

especially in crude oil as well as ferrous metal processing facing declining

commodity prices. Manufacturing is also dampened by external headwinds like

trade frictions and softening global economy, the NBS said.

     --The production index continued to drop to 50.8% from 51.9% in November.

The new orders index decelerated 0.7 percentage point to 49.7%. New export

orders slowed to 46.6% from 47.0%.

     --The average manufacturing PMI for 2018 recorded 50.9%, weaker than last

year at 51.6%, the NBS said.

     --Non-manufacturing PMI edged up to 53.8% from 53.4% in November, well

within expansionary territory. Business activities in railway transportation,

telecommunications, banking, insurance and other financial industries were still

growing strong. Those in road transport, postal, catering, securities, real

estate sectors were in contraction, the NBS said.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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