China's manufacturing output strengthens with trade deal in sight

China’s manufacturing sector continued to expand output in December, adding to evidence that the world’s second-largest economy is stabilizing as the signing of a phase one trade deal with the US nears.

 

The manufacturing purchasing managers’ index remained at 50.2, according to data released by the National Bureau of Statistics on Tuesday. The outlook for export-oriented firms brightened, with a sub-index of new orders for export rising above the 50 mark for the first time since May 2018, production recovered for a second month and output prices narrowed their decline.

 

On the downside, the non-manufacturing gauge fell to 53.5 from 54.4, and an index of small manufacturing firms dropped after a strong rebound from the previous month.