"China's Factory Activity Shrinks Beyond Forecasts in December"

China's manufacturing activity shrank for the third month in a row in December, with the official purchasing managers' index (PMI) dropping to 49.0 from 49.4 in November, indicating a contraction in factory activity more severe than analysts had anticipated. This downturn is attributed to weak demand and adds to the challenges facing China's economic recovery, which is already under pressure from a property downturn, local government debt concerns, and sluggish global growth. The government has implemented several measures to bolster the economy, but the persistent contraction highlights the ongoing difficulties.