(Sharecast News) – China’s manufacturing industry expanded at its slowest pace in three months in December as rising costs put pressure on hiring of workers.
The Caixin/Markit manufacturing purchasing managers’ index dipped to 53.0 from 54.9, missing a consensus forecast of 54.8 compiled by Reuters. The reading was well above 50, which separates expansion and contraction.
Slower production weighed on the index, partly due to weaker growth in export sales. China’s huge manufacturing sector has recovered strongly from the Covid-19 crisis supported by strong exports but renewed restrictions in many export markets could hit demand for Chinese-made goods.
The survey showed costs for materials such as metals rising for China’s factories at the fastest pace since 2017, prompting producers to increase prices. Cost cutting efforts contributed to stagnant employment.
Wang Zhe, Caixin Insight’s senior economist, said: “We expect the economic recovery in the post-epidemic era to continue for several months, and macroeconomic indicators will be stronger in the next six months … Meanwhile, we need to pay attention to the mounting pressure on costs brought by the increase in raw material prices and its adverse impact on employment,”
