China's factory activity shrank for the first time in seven months in December. That's according to the HSBC/Markit Purchasing Managers' Index.
The PMI readings were at 49.6, slightly lower than the 50.0 mark, which separates growth from contraction. This final number was slightly higher than the earlier flash reading, but marked a downward trend from the final 50.0 last month.
Total new orders contracted for the first time since April, while output prices declined for the fifth straight month, signaling soft demand.
Analysts say domestic demand led the slowdown, and that the weak performance invites further easing measures by Beijing.