A staff member works at a workshop in Lin'an District of Hangzhou, east China's Zhejiang province, Jan 28, 2023. (PHOTO/XINHUA)

BEIJING - The purchasing managers' index (PMI) for China's manufacturing sector was 49 in December, down from 49.4 the previous month, according to data released by the National Bureau of Statistics (NBS) Sunday.

A reading above 50 indicates expansion, while a reading below 50 reflects contraction.

Manufacturing companies maintained consistent market expansion optimism, with the sub-index for production and business forecasts standing at 55.9, up 0.1 from the previous month

The sub-index for large enterprises was 50 in December, a 0.5 decrease from the previous month. Meanwhile, the sub-index for production was 50.2, a 0.5 decrease from the previous month.

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Manufacturing companies maintained consistent market expansion optimism, with the sub-index for production and business forecasts standing at 55.9, up 0.1 from the previous month and continuing the expansion momentum for the sixth month consecutively.

According to the NBS, as the New Year holidays approach, companies are bolstering their confidence in the production and business operations involving consumer goods, such as farm produce, food and drinks.

In response to the manufacturing PMI data, NBS senior statistician Zhao Qinghe remarked that the external environment's complexities, severity and uncertainties are increasing, with a drop in overseas orders and a shortage of domestic demand posing challenges for Chinese companies.

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Statistics released on Sunday also revealed that non-manufacturing activity expanded at a faster pace in December, with the PMI for this sector climbing 0.2 from November to 50.4.

The service sector sub-index stood at 49.3 in December, unchanged from the previous month.

The business activities in sectors such as postal, telecommunications and financial services expanded steadily in December, with their respective sub-indexes exceeding 55, the NBS data showed.

In December, enterprises became more confident in the service sector's recovery, with the sector's sub-index for business expectations edging up 0.1 from the previous month to 59.4.

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This month, the construction sector maintained robust growth, with its sub-index for business activities standing at 56.9, up 1.9 from November.

The sub-index measuring expectations for activities in the construction sector increased by 3.1 from November to 65.7, indicating optimism among construction enterprises.