China's factory activity shrinks in December

Beijing

ACTIVITY in China's industrial sector contracted in December for the first time in seven months, the latest in a string of weak economic indicators that will intensify calls for more stimulus measures to head off a hard landing. The flash HSBC/Markit manufacturing purchasing managers' index (PMI) fell to 49.5 in December from November's final reading of 50.0 and below the 50.0 forecast by analysts.

The new orders sub-index fell to 49.6, the first contraction since April. "The manufacturing slowdown continues in December and points to a weak ending for 2014," Hongbin Qu, chief economist for China at HSBC, said after the survey was released on Tuesday. "The rising disinflationary pressures, whi…