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BEIJING (Reuters) – China's industrial activity declined for the first time in more than two years in December, showing that Beijing has a huge challenge in trying to end a dazzling trade war with Washington and reduce the risks of an even deeper economic slowdown in 2019.
Increasing pressure on the industry suggests a loss of speed in China, raising concerns about slowing down of global growth, especially if the Sino-US dispute continues. ] Trade frictions are already hampering global supply chains, fueling fears of an escalating problem for global trade, investment and unstable financial markets next year.
The Index of Purchasing Managers (PMI). ) – the first to show every month the state of China's economy – fell to 49.4 in December, below the threshold of 50 points a survey conducted by the National Statistics Agency (NBS) revealed Monday
that it was the first decline since July 2016 and the lowest forecast since February 2016. Analysts had predicted a fall of 50.0 index the previous month to 49.9
China is expected to implement more economic support measures in the coming months, in addition to a number of initiatives this year. A prolonged deceleration of the manufacturing sector, which is fundamental for employment, would probably trigger new attempts to stimulate domestic demand.
In November, industrial production had risen to its lowest level in almost three years, while industrial profits first in almost three years.
By Ryan Woo and Lusha Zhang; Additional reports of Yilei Sun
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