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China’s Factories, Services Cap Year of Gains as Prices Rise

  • Manufacturing PMI was at 51.4 in December, services at 54.5
  • Policy makers still must confront outflows, Fed and Trump
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China's Factories and Services Cap Year on Robust Notes

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China’s factories and services both closed out 2016 on relatively robust notes that signal growth is strong enough for policy makers to keep pushing for economic reforms in 2017.

The manufacturing purchasing managers index stabilized near a post-2012 high in December, edging down to 51.4 from 51.7 the prior month. The non-manufacturing PMI slipped to 54.5 from a two-year high of 54.7 in November. Numbers higher than 50 indicate improving conditions. A gauge of factory input prices surged to a five-year high of 69.6.