Workers assemble a new-energy vehicle (NEV) in a factory in Jinhua, East China's Zhejiang Province on October 25, 2023. In the first nine months of this year, China exported 825,000 NEVs, data from the China Association of Automobile Manufacturers shows. Photo: VCG

China's private Caixin manufacturing purchasing managers' index (PMI) in December came in at 50.8, a four-month high, a signal of the recovery momentum of the country's manufacturing industry. 

The index was up 0.1 points from November, remaining in expansion territory for a second consecutive month. 

The figure indicated a steady and stable recovery for small and medium-sized manufacturing enterprises, thanks to effective policy support, Li Chang'an, a professor at the University of International Business and Economics in Beijing, told the Global Times on Tuesday. 

Li said that the growth trend for the PMI in the final months of 2023 is likely to persist and continue providing momentum for steady economic growth in 2024.

The expansion speed of manufacturing industry production and demand slightly accelerated, reaching the highest levels since June in 2023 for production and March for demand. 

Surveyed enterprises said that market demand had improved, and orders for both consumer and intermediate goods had risen. 

There was a marginal improvement in external demand, as the new export orders index rebounded from the contraction zone to its highest level in nearly six months.

However, observers noted that China's manufacturing sector is still facing challenges and uncertainties in both the domestic and overseas markets. 

The official manufacturing PMI announced by the National Bureau of Statistics on Sunday reached 49.0, dipping by 0.4 points from the previous month. Surveyed enterprises said that major operating pressure came from shrinking overseas orders plus weak domestic demand. 

Li stressed that Chinese manufacturers should further explore opportunities in emerging markets, and more policy support would be needed to bolster domestic demand. 

Experts said that as the central government has consistently prioritized supporting the real economy, stimulus policies for the manufacturing sector are likely to continue in 2024.

According to the Central Economic Work Conference held from December 11 to 12, 2023, China's highest-level annual economic conference, the central government will implement structural tax cuts and fee reductions with a focus on supporting technological innovation and the development of the manufacturing industry. 

Global Times