MNI DATA IMPACT:China Dec PMI 51.9; Economy Continues Recovery

China's December manufacturing Purchasing Manager Index slowed to 51.9 from the 3-year high of 52.1 reported in November, but continued to hold above the break-even for the tenth straight month. The non-manufacturing gauge read at 55.7 in December, down from the year peak of 56.4, according to the latest data from the National Bureau of Statistics released on Thursday.

MNI highlights the following key points:

• The production sub-index registered 54.2 in December, slowing down from last month's 54.7, but still posting the second quickest growth for the year.
• The new-orders sub-index was 53.6 in December, down from the previous 53.9 but reflecting a continued improvement in demand.
• The narrowing gap between the production and new orders indices indicates a more balanced supply-demand, the Bureau said.
• New export orders and imports rose above 50.0 for the fourth time this year to 51.3 and 50.4 respectively, mirroring recovering foreign trade activity.
• Among the non-manufacturing PMI sub-indicators, the service business activities index was 55.7, slowing down from last month's 56.4.
• The services business activity expectation index stood at 60.1 in December, the sixth month above 60, showing confidence in a stable recovery.