HSBC China PMI Eases in Dec As Factory Output Stays Strong

BEIJING, Dec. 31 -- HSBC's China Purchasing Managers' Index (PMI) fell to a three-month low in December as output and new orders both eased, but the country's vast manufacturing sector continued to expand strongly towards the year-end, Reuters reported Thursday.

The index, which is designed to provide an early indication of conditions in a broad range of industries, dipped to 54.4 from 55.3 in November but remained above the long-run series average of 52.3, according to the report.

China's manufacturing sector growth in the fourth quarter as a whole was the strongest since the first quarter of 2010, it said.

A reading above 50 indicates expansion on the month, while a figure below 50 denotes contraction, the report said.

The PMI also showed that inflationary pressure remained elevated in December, though had perhaps peaked, it added.