By a staff reporter, with AAP
Activity in the Chinese manufacturing sector has fallen in line with expectations to a three-month low in December, according to a private survey.
The HSBC China manufacturing PMI fell to 50.5, in line with Bloomberg forecasts.
A reading above 50 indicates the sector is expanding, while a print below 50 indicates contraction.
In November, the index printed at 50.8, while the index stayed in expansionary territory for the fifth consecutive month in December.
HSBC chief economist for China Hongbin Qu said the moderation of the index was mainly due to slower output growth.
"However, the final PMI sustained the fifth above-50 reading in a row thanks to a steady increase of new orders.
"The recovering momentum since August 2013 is continuing into 2014, in our view.
"With inflation still benign, we expect the current monetary and fiscal policy to remain in place to support growth."
Yesterday, official figures showed the purchasing managers' index (PMI) for December was at 51.0, down from November's 51.4, according to the National Bureau of Statistics.