Divergence in China’s Economic Performance

A slight slowdown in Chinese manufacturing is offset by strong growth in non-manufacturing activity,
reflecting a divergence in the performance of economic sectors in December.

Content

China
Gas

China

Slight Slowdown in Chinese Manufacturing Activity and Strong Growth in Non-Manufacturing Activity in December

Data from the China Federation of Logistics on Tuesday showed a marginal slowdown
in the manufacturing sector’s activity in December,
with the Manufacturing Purchasing Managers’ Index (PMI) recording 50.1 points.
This is below expectations of 50.3 points and the previous reading of 50.3 points in November.

In contrast, non-manufacturing activity expanded significantly,
with the Non-Manufacturing PMI recording 52.2 points,
exceeding expectations of 50.2 points and higher than November’s reading of 50.0 points.

PMI readings above 50 indicate sector growth, while readings below that level reflect contraction.

Gas

European Gas Prices Rise as Russian Supply Halt Looms
European gas prices rose by 2% on Tuesday,
with Dutch gas futures reaching €48.85 per megawatt-hour amid expectations of a halt in Russian gas supplies through Ukraine.

The gas transit agreement between Russia and Ukraine is set to expire today, with Kyiv refusing to extend it,
accusing Moscow of using revenues to fund the war.
This comes as Europe braces for a sharp drop in temperatures in January,
increasing the demand for gas used in heating.

Meanwhile, Slovakia has threatened to cut backup electricity supplies to Ukraine
if gas shipments through Ukrainian territory are halted.

Divergence in China’s Economic Performance

Divergence in China&#8217;s Economic Performance

Related Topics

Divergence in China’s Economic Performance