(Yicai) Dec. 31 -- China's manufacturing sector saw activity expand in December for the first time in nine months thanks to policy support measures and a surge in pre-holiday orders.

The manufacturing purchasing managers' index was 50.1 for this month, up from 49.2 last month, figures released by the National Bureau of Statistics showed today. The gauge had languished below the 50 boom-bust line since April.

The rebound was mainly driven by the impact of economic policies introduced earlier this year, said Wen Tao, an analyst at the China Logistics Information Center. Also, the Central Economic Work Conference held mid-December urged the adoption of more proactive economic policies next year, which has boosted market confidence, Wen noted.

As the key restocking period before the Lunar New Year approaches, some pent‑up demand for manufacturing is being released as companies implement their new year plans, Wen added.

The rebound shows that market expectations are improving, said Zhang Liqun, a special analyst at the China Federation of Logistics & Purchasing, but the weakness in demand that has been seen in recent months remains substantial, and many firms still face difficulties selling products.

Substantial government investment in public goods will be needed to effectively boost orders, stimulate business and social investment, support employment and consumption, and enable systemic efforts to expand domestic demand yield results as soon as possible, Zhang noted.

New orders stood at 50.8, up from 49.2 in November, the NBS data also showed. New export orders rose to 49 from 47.6, while production came in at 51.7, rising from 50. Production and business activity expectations jumped to 55.5 from 53.3, the highest level since April 2024.

The non-manufacturing PMI, which includes construction and services, was 50.2 compared with 49.5 the month before, expanding again after falling below 50 in November. The construction PMI jumped to 52.8 from 49.6, while the services PMI inched up to 49.7 from 49.5.

The composite PMI output index, which combines the manufacturing PMI's production gauge and the non-manufacturing PMI, stood at 50.7 percent, an increase from 49.7.

Editors: Dou Shicong, Tom Litting