China's manufacturing pace slowed in December

China's manufacturing activity expanded at a slower pace in December, according to a government survey of purchasing managers released Tuesday. The Purchasing Managers' Index fell to 55.3 last month from 55.4 in November, the statistics bureau said in an e-mailed statement. A reading above 50 indicates expansion. China is trying to cool investment to curb environmental damage and the risk of bad loans and idle factories should demand for exports slow. The government last month raised borrowing costs to a nine-year high and pledged a "tight" monetary policy.

The figure for December showed "a normal seasonal fluctuation," said Zhang Liqun, a researcher at the State Council Development & Research Center in Beijing. China's investment and economic growth quickened in October and November, and the PMI has not yet reflected those changes, he said. Of 20 industries surveyed, 18, including transportation equipment manufacturers, garment producers and general equipment makers, scored more than 50.