China’s manufacturing activity contracted for the first time in 19 months in December, as the world’s second-largest economy has suffered from weak domestic demand and trade frictions with the United States. Beijing needs to roll out immediate stimulus to prevent the continued weakening of the economy, say experts.
The Caixin Manufacturing Purchasing Managers’ index (PMI) missed market estimates, falling below 50, the mark that separates expansion from contraction. The gauge of nationwide manufacturing activity fell from 50.2 in November to 49.7 last month, the lowest level since May 2017.
