China's industrial recovery slows

A child wearing a mask to protect from the coronavirus runs past an advertisement "Global Warehouse" outside a mall in Beijing on Monday, Jan. 4, 2021. China's manufacturing activity improved in December but at its weakest rate in three months as the economy recovered from the coronavirus pandemic while its trading partners struggled with rising infections, according to two surveys. (AP Photo/Ng Han Guan)
A child wearing a mask to protect from the coronavirus runs past an advertisement "Global Warehouse" outside a mall in Beijing on Monday, Jan. 4, 2021. China's manufacturing activity improved in December but at its weakest rate in three months as the economy recovered from the coronavirus pandemic while its trading partners struggled with rising infections, according to two surveys. (AP Photo/Ng Han Guan)

BEIJING -- China's manufacturing activity improved in December but at its weakest rate in three months as the economy recovered from the coronavirus pandemic while its trading partners struggled with rising infections, according to two surveys.

Separately, Euro-area manufacturing grew at the fastest pace in more than 2½ years in December, bringing some positive news at the end of a horrific 2020 for the region's economy.

Regarding China, a monthly purchasing managers' index issued Monday by business magazine Caixin slipped to 53 from November's 54.9 on a 100-point scale on which numbers above 50 show activity expanding. A separate index by an official industry group, the China Federation of Logistics & Purchasing, declined to 51.9 from the previous month's 52.1.

China is the only major economy on track to record positive economic growth in 2020 while the United States and Europe struggle with rising case numbers that have prompted governments to reimpose travel and business controls.

Sub-indexes of exports and employment in both surveys rose, but at a slower rate than in December.

"We expect the economic recovery in the post-epidemic era to continue for several months," economist Wang Zhe of the Caixin Insight Group said in a statement.

Caixin said a sub-indicator of business confidence in its survey dipped to a three-month low.

"We need to pay attention to the mounting pressure on costs" due to higher raw material prices, Wang said. That is "particularly important" as regulators decide how to withdraw economic stimulus, he said.

EUROZONE ACTIVITY

In the eurozone, final readings of IHS Markit's monthly surveys showed growth led by Germany, where activity expanded the most in almost three years, with all other countries covered also reporting an improvement on November. The euro-area index came in at 55.2, up from 53.8 though slightly lower than a preliminary reading.

The improvement comes as European governments continue grappling with the coronavirus. The latest restrictions to contain the spread have been mostly confined to services such as bars and restaurants, allowing manufacturing to continue. That's limiting the downside to the economy compared with the huge slump seen during the initial phase of the pandemic.

"Euro-zone manufacturing ended 2020 on an encouragingly strong note," said Chris Williamson, an economist at IHS Markit. "Rising virus case numbers are nevertheless likely to mean trading conditions remain challenging in the near term and therefore constrain growth."

Some of the improvement at factories in December, particularly in Ireland and the Netherlands, reflected a temporary boost in demand from U.K. customers stockpiling before Brexit's full effects.

Information for this article was contributed by staff members of The Associated Press and by Fergal O'Brien of Bloomberg News (WPNS).

FILE - In this Oct. 27, 2020, file photo, a woman wearing a mask works in a garment factory in Donghai county in east China's Jiangsu province. China’s manufacturing activity improved in December, 2020 but at its weakest rate in three months as the economy recovered from the coronavirus pandemic while its trading partners struggled with rising infections, according to two surveys. (Chinatopix Via AP)
FILE - In this Oct. 27, 2020, file photo, a woman wearing a mask works in a garment factory in Donghai county in east China's Jiangsu province. China’s manufacturing activity improved in December, 2020 but at its weakest rate in three months as the economy recovered from the coronavirus pandemic while its trading partners struggled with rising infections, according to two surveys. (Chinatopix Via AP)
A woman and a child wear masks to protect from the coronavirus pass by a sale sign outside a mall in Beijing Monday, Jan. 4, 2021. China's manufacturing activity improved in December but at its weakest rate in three months as the economy recovered from the coronavirus pandemic while its trading partners struggled with rising infections, according to two surveys. (AP Photo/Ng Han Guan)
A woman and a child wear masks to protect from the coronavirus pass by a sale sign outside a mall in Beijing Monday, Jan. 4, 2021. China's manufacturing activity improved in December but at its weakest rate in three months as the economy recovered from the coronavirus pandemic while its trading partners struggled with rising infections, according to two surveys. (AP Photo/Ng Han Guan)

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