China factory survey signals fifth decline in manufacturing

China’s first official economic report of the year suggested manufacturing weakened for a fifth straight month in December, the longest such streak since 2009.

The purchasing managers’ index edged up to 49.7 last month from a three-year low of 49.6 in November, the National Bureau of Statistics (NBS) said yesterday. The non-manufacturing PMI, meanwhile, rose to 54.4, the highest since August 2014. Numbers below 50 indicate deterioration.

The slight improvement in the country’s sluggish manufacturing sector follows stepped-up stimulus including six People’s Bank of China interest-rate cuts. Policymakers trying to meet Premier Li Keqiang’s goal of about 7% growth this year are also facing pressure from employment, which has been steady thanks to a resilient services sector. Economists said the continued contraction portends more monetary and fiscal support.