China's manufacturing PMI continues expansion in December

China's manufacturing activity remained in the expansion range for a third consecutive month in December, with the official manufacturing purchasing managers' index (PMI) coming in at 50.1, according to data released by the National Bureau of Statistics (NBS) on Tuesday.

The PMI, a key gauge of the economic health of manufacturing and service sectors, typically uses a reading above 50 to indicate expansion in the sector and one below that to denote contraction.

The index for new orders rose for a fourth consecutive month, up 0.2 point from the previous month at 51. Exports also continued to stabilize, with the new export orders index rising for two consecutive months.

The equipment manufacturing PMI, with its reading at 50.6, have stayed in the expansion range for five consecutive months, said Huo Lihui with the NBS. The continuing increase of PMI in the consumer goods segment has been driven by factors such as the government's trade-in policy and the approach of upcoming traditional festivals, she added.

Overall, the manufacturing PMI averaged 50.2 in the fourth quarter, up significantly from 49.4 in the third quarter, Huo added.

Entering the fourth quarter, the relationship between supply and demand in China's production and business activities has become more balanced, and the trend of long-term improvement of the national economy has become stable, said Liu Yuhang, director of the China Logistics Information Center.