Activities across Chinese factories and industries decreased marginally in the month of December but showed growth for fifth consecutive month on year-on-year basis, in a latest sign that the world's second largest economy is stabilizing steadily.

The official purchasing managers' index (PMI), which ascertains productive activities in factories and mines, stood at 51.4 in December. This is slightly down from 51.7 recorded in last month November, but marginally better than 49.7 clocked in the earlier year of December.

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The PMI is based on a 100-point scale and is divided between 50 points each to denote expansion and stagnation. Anything above 50 points is generally seen as expansion, while below 50 points is referred to as contraction.

China's manufacturing sector has been one of the worst hit sectors in the ongoing economic recession. The sector has been on a downslide for almost one and a half year, largely due to tepid demand for Chinese products in global as well as domestic. 

However, upturn in real estate sector and positive monetary measures taken by the government helped the manufacturing sector to stage a recovery.

The government's stimulus packages as well as announcements on big ticket infrastructure projects also helped in improving sentiments in Chinese factories. But the extensive spending has raised alarming concern among economists about the country's rising fiscal deficit.    

China's current economic recession has had far reaching impact on not just domestic, but also global economy. Many economists have termed the current recession period as the worst economic crisis in China's two decade history.     

TagsChina manufacturing, China Manufacturing PMI, china, Chinese Economy