MNI: China Caixin Dec Manufacturing PMI Falls to 19-month low

     BEIJING (MNI) - The Caixin China manufacturing Purchasing Managers Index

(PMI) fell 0.5 to 49.7 in December from November, a 19-month low, in another

sign that factory activities in China are shrinking.

     New orders, which indicates future activity level, fell for the first time

since July 2016, Caixin said in a statement. Many surveyed manufacturers noted

that the sluggish demand has dampened sales. New export orders continued to fall

for the ninth month, albeit at a slower pace, Caixin said.

     "Manufacturing activities could be further dampened by declining domestic

demand and suppressed external demand," Zhong Zhengsheng, chief economist at

Caixin commented in the statement. Companies are more inclined to reduce

inventories, while the prices of industrial products face a downturn, Zhong

said.

     The Caixin figure followed the downward trend of the official PMI. The PMI

as reported by the National Bureau of Statistics Monday dropped to 49.4 from

50.0 in November, and is now at the lowest since 49.0 recorded in February 2016.

     The Caixin PMI tracks small and medium sized manufacturers that are not

surveyed by NBS.

--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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