BEIJING (dpa-AFX) - China's manufacturing sector has moved to contraction in December, the latest survey from HSBC Bank revealed on Tuesday, showing a seven-month low PMI score of 49.5.
That's down from the boom-or-bust score of 50.0 in November that also separates expansion from contraction.
'Domestic demand slowed considerably and fell below 50 for the first time since April 2014. Price indices also fell sharply. The manufacturing slowdown continues in December and points to a weak ending for 2014. The rising disinflationary pressures, which fundamentally reflect weak demand, warrant further monetary easing in the coming months,' said Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC.
Among the individual components of the survey, the output index climbed to a two-month high of 49.7 in December.
The sub-indexes for employment and stocks of finished goods also remained in contraction albeit at a slower pace.
Output prices, input prices and stocks of purchases contracted at a faster pace.
New orders swung to contraction from expansion in the previous month.
Quantity of purchases moved to expansion from no change, while backlogs of work expanded at a faster pace.
Supplier delivery times lengthened at a slower rate.
Copyright RTT News/dpa-AFX