China Dec official PMI seen dipping to 18-month low

BEIJING, Dec 29 (Reuters): Growth in China's manufacturing sector likely slowed to a 18-month low in December, a Reuters poll showed, adding to signs of a protracted slowdown in the world's second-largest economy that may prompt authorities to roll out more stimulus measures.

The median forecast from 11 economists in the poll was that the official manufacturing Purchasing Managers' Index (PMI) for December will drop to 50.1, the weakest level from June 2013, from 50.3 in November. The PMI will be released on Thursday.

A reading above 50-point level indicates an expansion in activity while one below that points to a contraction on a monthly basis. "We expect the manufacturing sector to remain sluggish in December, in line with a continued slowdown in the economy as the property sector weighs," said Nie Wen, an economist at Hwabao Trust in Shanghai.

A preliminary PMI survey released earlier this month by HSBC/Markit showed activity in the factory sector contracted in December for the first time in seven months. The official PMI is focused on larger, state-owned factories, as opposed to the HSBC/Markit PMI which focuses more on smaller manufacturers in the private sector.