China's official manufacturing PMI edges lower in Dec, slightly weaker than expectations

Data released by the China Federation of Logistics & Purchasing together with the National Bureau of Statistics on Sunday showed that China's official manufacturing PMI fell to 51.4 in December from 51.7 in November. December's reading was slightly below the forecast for 51.5.

China's manufacturing sector continued to remain in expansion for a fifth consecutive month in December, but growth slowed slightly more than expected. Data suggested that government measures to rein in soaring asset prices are starting to have a knock-on effect on the broader economy.

"Today's PMI figures suggest that the change of policy tone has taken its toll, as the authorities are seriously concerned about the asset bubbles," said Zhou Hao, senior economist at Commerzbank.

Separate data showed the pace of growth in the services sector also slowed in December. The official non-manufacturing Purchasing Managers' Index (PMI) stood at 54.5 in December, down from 54.7 in November.

The more closely-watched Markit/Caixin PMI, a private gauge of manufacturing activity which focuses more on small- and mid-sized firms, is due on Tuesday, Jan. 3.