China’s manufacturing activity grows slightly in December

China’s manufacturing activity grew slightly in December, while the services and construction sectors saw a notable recovery, an official survey showed on Tuesday, suggesting that new stimulus measures are beginning to spread to some sectors as the economy braces for new trade risks.

The official Purchasing Managers’ Index (PMI) slowed to 50.1 in December from 50.3 in November, the National Bureau of Statistics said in a statement. While the index remained above the 50-point mark that separates growth from contraction, it was below the median forecast of 50.3, according to a Reuters poll.

China’s $18 trillion economy is still struggling to recover from the fallout from the Covid-19 pandemic, with weak consumption and investment, along with a prolonged property crisis. However, Chinese authorities are hopeful that the latest round of fiscal and monetary measures will help improve the property market, which continues to weigh on the broader economy.