China’s factory activity growth in December fell short of expectations, with the official purchasing managers’ index (PMI) at 50.1, below the anticipated 50.3. This indicates stagnation amid ongoing economic challenges, despite recent stimulus measures. While manufacturing showed slight improvement, the non-manufacturing PMI rose to 52.2, suggesting some expansion in services and construction. The World Bank has updated its GDP growth forecast for China to 4.9% for 2024, influenced by policy changes. However, concerns persist over deflation, weak consumer demand, and declining industrial profits. The economic outlook may face further strain depending on U.S. trade policies under a new administration.
