China's manufacturing PMI expands for second straight month

The news: China's manufacturing sector expanded for a second straight month in December, according to private Purchasing Managers Index data. The figures are bolstering hopes of a solid recovery in the world's second largest economy.

The numbers: The Caixin/S&P PMI came in at 50.8 in December, up from 50.7 in November. A rating of 50 delineates growth from contraction in the manufacturing sector. The result was driven mostly by domestic demand, however business confidence remains subdued. The uptick also did not result in an increase in hiring with factory owners cutting payrolls for a fourth straight month, according to Reuters.

The context: China's economy has been lumbering as it recovers from the pandemic. It faces major headwinds, including a property sector crisis, weak demand at home and abroad and local government debt blowouts.