Chinese manufacturers signalled weaker growth momentum at the end of 2014, fresh evidence of headwinds facing the Chinese economy, a recent HSBC report showed.
After adjusting for seasonal factors, the HSBC Purchasing Managers' Index (PMI), which provides a snapshot of operating conditions in the manufacturing sector, posted at 49.6 in December, down from 50.0 in November, the HSBC said on Wednesday.
The rate of deterioration was "only marginal" and the weaker PMI reading was partly a result of a renewed drop in new business volume for Chinese manufacturers in December, the report said.
"Though only slight, it was the first reduction in new orders since April. Data suggested that the decline was largely driven by softer domestic demand, as new export work rose for the eighth month in a row and at a slightly quicker rate than in November," according to the report.
"Today's data confirmed the further slowdown in the manufacturing sector towards year end. We believe that weaker economic activity and stronger disinflationary pressures warrant further monetary easing in the coming months," said HSBC chief China economist Qu Hongbin.
