Economy stays steady through infrastructure

Govt spending helps maintain stability despite short-term downward pressures

The official purchasing managers' index fell to 49.4 in December, below the 50-point level that separates growth from contraction, according to data released on Monday by the National Bureau of Statistics.

It was the first contraction since July 2016 and the weakest PMI reading since February 2016 when it came in at 49. In the meantime, the construction industry's prosperity has rebounded significantly, with the subindex measuring business activity standing at 62.6, up 3.3 percentage points from the previous month. The subindex for new orders reached 56.5, remaining stable after a third consecutive monthly rebound, which showed that real estate and infrastructure provide support in the short term.