Chinese manufacturing activity declined for the second consecutive month in December but showed tentative signs of stabilising, according to a survey published yesterday.

The HSBC purchasing managers’ index for China hit 48.7 this month, weighed down by falling orders and remaining below the 50 mark that denotes a contraction. Yet the decline was softer than November’s 47.7 reading, signalling that the slowdown in manufacturing growth might be nearing a bottom, at least in the short term.

Qu Hongbin, chief China economist with HSBC, warned it was still too early to sound the all-clear and that “more aggressive action on both fiscal and monetary fronts” was needed to shore up growth. “A hard landing should be avoided so long as easing measures filter through in coming months,” he said.