The Conference Board Leading Economic Index (LEI) for China increased 0.7 percent in December to 222.0 (2004 = 100), following a 0.5 percent increase in November and a 0.4 percent increase in October. Five of the six components contributed positively to the index in December.

"December's monthly increase in the LEI for China was in part due to seasonal factors, as firms ramped up production ahead of the Chinese New Year holiday. Increased bank lending and an uptick in consumer sentiment also contributed to the reading in December, as liquidity conditions eased somewhat," says Andrew Polk, resident economist of The Conference Board in Beijing. "However, the LEI growth has been slowing gradually over the last six months, and strengths and weaknesses among the leading indicators have become balanced. While this trend indicates that economic growth will continue to slow in the first quarter of 2012 on weak external demand and previous policy tightening, the government's shifting focus from inflation control to growth support should herald continued gradual policy easing, putting a floor under the deceleration."

The Conference Board Coincident Economic Index (CEI) for China, which measures current economic activity, increased 0.8 percent in December to 215.4 (2004 = 100), following a 1.1 percent increase in November and remained unchanged in October. All five components contributed positively to the index in December.