China Caixin PMI Manufacturing dropped to 53.0 in December, down from 54.9, missed expectation of 54.9. Markit said that output and new work expanded at slower, but still marked, rates. Staffing levels stagnated, despite further uptick in backlogs of work. Input costs increased at quickest rate for three years.
Wang Zhe, Senior Economist at Caixin Insight Group said: “In December, the negative impact of the pandemic on the domestic economy further subsided and the manufacturing industry continued to recover. Both the supply and demand sides continued to improve. Overseas demand also steadily increased. In terms of the trend, we expect the economic recovery in the post-epidemic era to continue for several months, and macroeconomic indicators will be stronger in the next six months, taking into account the low bases in the first half of 2020. Meanwhile, we need to pay attention to the mounting pressure on costs brought by the increase in raw material prices and its adverse impact on employment, which is particularly important for the design of the exit from stimulus policies implemented during the epidemic.”
