China's Caixin manufacturing PMI falls in December

Manufacturing activity in China fell sharply in December as rising COVID-19 cases disrupted production and weighed on demand. China's Caixin Media and IHS Markit manufacturing purchasing managers' index (PMI) fell to 49.0 points in December from 49.4 in November. The PMI has been below the break-even level of 50 basis points for the past five months, indicating a contraction. Economists had expected the manufacturing PMI to fall to 48.8 points in December. "Supply tightened, aggregate demand remained weak, overseas demand fell, employment deteriorated, logistics are sluggish, manufacturers' profitability is under pressure, and inventories are low," said Wang Zhe, senior economist at Caixin Insight Group.