China's manufacturing activity contracted again in December for the fifth consecutive month, according to data published today by the private magazine Caixin, reflecting the impact of the covid-19 outbreaks in the country.

The purchasing managers' index (PMI), published by Caixin and compiled by the British economic information company IHS Markit, rose from 49.4 points in November to 49 points in the last month of the year.

When it is above 50 points, this indicator suggests an expansion in the sector, while below that barrier it presupposes a contraction in activity. The index is seen as an important indicator of the evolution of the world's second largest economy.

December's figures are still slightly higher than expected by analysts, who predicted that the indicator would stand at 48.8 points.

The official PMI, released on Saturday by the National Statistics Office (GNE) and quoted by Lusa, gave an even worse result, falling from 48 to 47 points.

Wang Zhe, an economist at Caixin, pointed out that the contraction in activity in December was caused by the supply and demand sides. The drop in demand was further aggravated by the slowdown in the world economy, which is reflected in fewer purchases from China.

The sub-index measuring employment in the sector also reached the second worst mark in the last 34 months.

The businesspeople consulted, however, showed the highest level of optimism since last February, expressing confidence that the dismantling of the 'zero cases' policy of covid-19 will give impetus to the recovery of the Chinese economy.