BEIJING (dpa-AFX) - China's private sector growth moderated at the end of the year as both manufacturing and services logged weaker rates of expansion, survey data from IHS Markit showed Monday.
The Caixin composite Purchasing Managers' Index fell to 52.6 from a 21-month high of 53.2 in November. However, a score above 50 indicates expansion.
The Purchasing Managers' Index for the service sector dropped to 52.5 from a seven-month high of 53.5 a month ago. Manufacturing output rose solidly at the end of the year, despite the rate of increase easing to a three-month low.
New orders received by goods producers grew at the slowest pace in four months, while service companies reported a solid increase in sales that was the fastest since September. Further, new export business at the composite level grew at the slowest rate for three months.
Overall, employment across the manufacturing and service sectors rose only slightly at the end of the fourth quarter.
Further, the survey showed that at the composite level, unfinished workloads increased at a slightly quicker, albeit only slightly.
December data pointed to a further easing in the rate of input price inflation as cost burdens increased at the weakest rate for four months, data showed. Selling prices also advanced at only a fractional pace.
Manufacturing firms based in China were generally optimistic towards the one-year business outlook in December. Meanwhile, the level of optimism expressed by service sector firms edged down to the second-lowest on record.
Looking forward, the phase one trade deal between China and the U.S. should be able to help corporate sentiment recover, Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group said. China's economy is likely to get off to a quick start in 2020, but it will still be constrained by limited demand for the rest of the year.
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