BEIJING, Jan. 2 (Xinhuanet) -- China's factory activity saw a mild slowdown in December. That's according to official data jointly released by the China Federation of Logistics & Purchasing as well the National Bureau of Statistics. Analysts say the slowdown is not a major cause for concern, as the overall picture of China's manufacturing sector remains stable.
According to official data, the country's manufacturing PMI inched lower to stand at 50.1 in December. But the annual factory PMI remains at 50.7, showing no major decline from the past two years.
"Manufacturing PMI dropped by POINT 2 points, to stay slightly higher than the benchmark. That suggests China's manufacturing sector remains stable. But it lacks some momentum," Senior statistician Zhao Qinghe said.
At the same time, the steel industry, which has been beleaguered by overcapacity, saw a PMI reading of 44.1 in the same month. That's 0.8 points higher than November. Experts say that's thanks to improved liquidity, cheaper raw materials, and the government's recent intensive approval of infrastructure projects.
"Overall, the steel market has some room to go up. The supply and demand situation will see some improvement," Senior researcher Qiu Yuecheng said.
Industry insiders say the favourable PMI is also down to structural adjustment within the steel industry, with the sector shifting towards innovation based high-end manufacturing.
(Source: CNTV.com)
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