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China’s official manufacturing PMI increased slightly from November but was below market expectations. A reading below 50 suggests a contraction in activity, while a higher one indicates an expansion.
“Data suggested that client demand was weak both at home and overseas, with new export business falling for the first time in three months in December”, the data release said.
The Caixin PMI is a gauge of nationwide manufacturing activity, which focuses on smaller and medium-sized companies, unlike the official PMI data, which covers state-owned enterprises, and large companies.
Activity levels across Australia’s manufacturing sector continued to expand in December with the latest Ai Group manufacturing PMI reading coming in at 51.9. The street had expected a reading of 49.8.
Japan’s economy dodged recession in the third quarter with the initial estimate of a contraction revised to an annualized expansion of 1.0 percent due to gains in capital expenditure, data showed last month. The non-manufacturing PMI, meanwhile, rose to 54.4, the highest since August 2014.
Although robust, that growth rate has been slowing down year-on-year.
Still, economists expect more interest rate cuts, reductions in banks’ reserve requirements and other stimulus in 2016 as the economy has been unusually slow to respond to a year-long flurry of support measures, suggesting it is facing deeper-rooted cyclical and structural challenges than in the past.
The survey’s respondents said the low Australian dollar, which is 10 U.S. cents lower than it was a year before, was supporting exports and local orders. The continued expansion is the best streak of growth since 2010.
This is a breaking news story.
