China factory activity picks up in December as orders rebound ahead of holidays

Economic Overview - Chinese factory activity expanded for the first time in eight months in December, driven by increased orders ahead of holidays and builders completing projects [1] - The official purchasing managers index (PMI) for manufacturing rose to 50.1 in December, indicating expansion, with a similar private sector survey also reporting 50.1 [2] Manufacturing Sector Insights - The improvement in manufacturing activity is attributed to easing trade tensions with the U.S. and increased production in anticipation of the New Year holidays [3] - The official PMI for high-tech manufacturing reached 52.5 in December, up 2.4 percentage points from the previous month, while equipment manufacturing and consumer goods industries both recorded PMIs of 50.4 [5] Employment and Export Trends - Despite an overall increase in orders, new export sales declined slightly, and hiring weakened, indicating a marginal recovery in the manufacturing sector [6] - Large manufacturers increased output, but small and mid-sized enterprises, which are crucial for employment, remained in contraction [7] Economic Challenges - Some economists suggest that China's economic growth may be slower than official figures indicate, with ongoing challenges such as a slump in the property sector and excess capacity in various industries [8]