China's Dec PMI slips to four-month low

[BEIJING] A Chinese manufacturing index slipped to a four-month low in December, underscoring challenges for President Xi Jinping as he tries to sustain economic momentum while rolling out reforms.

The Purchasing Managers' Index (PMI) was at 51, the National Bureau of Statistics and China's logistics federation said yesterday. That was less than the median 51.2 estimate in a Bloomberg News survey of 29 economists and November's 51.4. A number above 50 indicates expansion.

Swelling local government debt, surging property prices in some cities and volatility in money-market rates are risks as Mr Xi embarks on reforms intended to lay the foundations for more sustainable long-term growth. The Chinese economy may have expanded 7.6 per cent in 2013, the slowest pace in 14 years, according to a State Council report last week.