Growth in China’s factory activity misses expectations as experts decry insufficient stimulus measures

A rise in factory activity in China in November missed analysts’ expectations on Tuesday, signaling that Beijing’s stimulus measures were not enough to significantly boost the country’s ailing economy.

Official index of purchasing managers of the country for December was 50.1, according to data published by the Data from the National Bureau of Statistics showed.

The reading missed Reuters expectations of 50.3. Manufacturing activity was 50.3 in November and 50.1 in October. A PMI reading above 50 indicates expanding activity, while a reading below indicates contraction.

Investors will also be watching the Caixin/S&P Global Purchasing Managers’ Index, which is scheduled to be released on Thursday.

“For the Chinese economy, 2024 will be remembered as a year of confusion,” said Larry Hu, Macquarie Group’s chief China economist.

“Deflationary pressures persist as stimulus policies are sufficient to meet the GDP target, but far from enough to revive the economy,” he added.

China’s economy has shown some recovery following a series of stimulus measures introduced from the end of September.

However, other recent economic data from China shows that the world’s second largest economy is still suffering from disinflation, mainly due to weak consumer demand and a prolonged downturn in the real estate market.

Consumer inflation in China fell to its lowest level in five months in November, and Art indicators of export and import of the country does not live up to expectations. Also, the last one retail sales data also disappointedbeating Reuters forecasts.

China’s industrial profits extended decline for fourth consecutive month, down 7.3% in November compared to last year.

last week, This was reported by the Ministry of Finance of China this will lead to increased financial support next year to help boost consumption by expanding trade in consumer goods, increasing pensions, and subsidizing health insurance for residents.

The Chinese authorities have also decided to issue 3 trillion yuan ($411 billion) in special treasury bonds. next year — the largest amount in history — to boost fiscal stimulus efforts, Reuters reports.

China will face big challenges with Donald Trump in the White House. Trump’s threat introduce higher tariffs on Chinese goods could further hurt China’s export sector, which is already dealing with increased trade barriers from the European Union.