Factory activity in China contracted for 3rd month in a row

Industrial activity in China contracted for the third month in a row in December, and by more than estimated, which casts a shadow over the expectations of economic recovery in the country, which has the second largest economy in the world.

According to official data issued today, the industrial purchasing managers index contracted to 49 this month, compared to 49.4 in November, compared to expectations of 49.5.

A reading below 50 indicates a contraction in activity, while a reading above 50 indicates growth.

In recent months, the Chinese government has introduced a series of policies aimed at supporting the weak economic recovery for the post-pandemic period, which has been disrupted by the severe recession in the real estate sector, local government debt risks, and fragile global demand levels.