By Gina Lee

Investing.com – China’s , thanks to production hikes and easing price pressures. However, the market continues to be affected by weaker employment markets and low business confidence.

Early in the day, data showed that the index was at 50.9 and higher than the 50 mark. This indicates growth. Investing.com had predicted a 50-figure figure in its November forecasts, but the index stood at 49.9 as of November.

Official data from the National Bureau of Statistics (NBS) released during the previous week showed that in December, up from the previous month’s reading of 50.1.

The government’s efforts to increase supplies and stabilize prices contributed to increased factory activity.

The Caixin survey showed that both the new export orders as well as the gauge for employment fell to their lowest levels since February 2021.

The demand increased and supply was robust. The easing supply restrictions led to an increase in output for the second consecutive month and at a quicker pace. However, the employment market was still struggling and companies were more cautious than usual. This indicates an insecure economic recovery. The repeated COVID-19 flare-ups and sluggish overseas demand were factors of instability,” Caixin Insight Group senior economist Wang Zhe told Reuters.

“Policymakers should focus on shoring up employment as well as on targeted support to small and midsize businesses,” Wang added.

Slower manufacturing growth, debt woes in the property sector, and sporadic COVID-19 outbreaks slowed down China’s economic recovery, after an initial strong start in 2020.

The People’s Bank of China has stated that it will maintain a flexible monetary policy in 2022 to stabilize growth and lower financing costs for businesses under economic headwinds.

Numerous cities were affected by COVID-19 in China. In December 2021 Zhejiang, an eastern coast province, experienced a minor COVID-19 epidemic. However, some companies were forced to stop production. The northwestern city of Xi’an remains under a lockdown that began on Dec. 22, 2021, as an outbreak in the city continues.