The Caixin China PMI manufacturing dropped to 49.7 in December, down from 50.2 and missed expectation of 50.3. That’s also the first contractionary reading since May 2017.
Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group, noted in the release that “external demand remained subdued due to the trade frictions between China and the U.S., while domestic demand weakened more notably”. And, “it is looking increasingly likely that the Chinese economy may come under greater downward pressure.”
