NBS PMI breakdown:

The manufacturing PMI remained in the contract zone in December, but the production index has shown an accelerated expansion. The production index stands at 51.3%, representing a 1.1 percentage point increase compared to December and reaching its highest level in almost 4 months.

In terms of industries, the production indices of industries such as food and beverages, refined tea, paper printing, cultural, educational, sports, and recreational products, as well as pharmaceuticals, are above 53.0%, indicating a faster expansion in production.

However, industries such as chemical raw materials and chemical products, chemical fibers and rubber/plastic products, and non-metallic mineral products are in the contraction zone, indicating a slowdown in production activities for enterprises in those sectors.

The new order index has shown a slight rebound. The new order index stands at 49.0%, indicating a 0.3 percentage point increase compared to the previous month. Among them, the new export order index, which reflects external demand, has increased by 1.4 percentage points compared to December, suggesting an improvement in both domestic and external market demand.

Looking at key industries, the new order indices for equipment manufacturing, high-tech manufacturing, and consumer goods industries are 50.3%, 50.2%, and 50.3%, respectively, all above the critical threshold. However, the new order index for high energy-consuming industries is 47.0%, still below the critical threshold, indicating insufficient market demand in these sectors.