China’s factory activity expands again as economy stabilises

China’s factory activity expanded for a third straight month in December, bolstering expectations the economy will reach its annual growth target after Beijing’s stimulus blitz.

The official manufacturing purchasing managers’ index was 50.1, the National Bureau of Statistics said Tuesday, above the 50-mark separating expansion and contraction. The median forecast of economists was 50.2 and the November reading was 50.3.

The non-manufacturing measure of activity in services and construction was 52.2, compared with a forecast of 50.2 and the previous month’s 50.

The world’s No. 2 economy has been showing tentative signs of recovery after authorities announced a raft of stimulus measures including interest-rate cuts in late September. But sluggish consumption remains a pain point just as exports — one of China’s main growth drivers — faces the threat of a new trade war from the incoming Trump administration.

In an effort to repair the economy’s weak link, Chinese policymakers earlier this month elevated boosting consumption and domestic demand the top priority for economic work next year, only the second time in at least a decade. They listed a few areas of focus including helping lower-income groups and improving the social safety net, although Chinese leaders have yet to provide details of their plans.