BEIJING, Jan 2 Reuters China39;s factory activity expanded at a quicker pace in December due to stronger gains in output and new orders, but business confidence for 2024 remained subdued, a privatesector survey showed on Tuesday.

The CaixinSP Global manufacturing PMI rose to 50.8 at the end of 2023 from 50.7 in November, marking the fastest expansion in seven months and surpassing analysts39; forecasts of 50.4. The 50point mark separates growth from contraction.

The sprawling manufacturing sector came under pressure amid weak demand in 2023, with a property downturn, geopolitical factors and tightfisted consumers all weighing on the postpandemic recovery.

Chinese top leaders at the end of last year pledged to adjust policy to support an economic recovery in 2024, while markets and investors are waiting for more stimulus measures to be rolled out.

The Caixin PMI contrasted with official data released on Sunday that showed manufacturing activity shrinking at a faster pace and more than expected in December.

Factory output in December rose at the quickest pace since May, while growth in new orders hit a 10month high thanks to firmer demand and a pick up in customer spending at the yearend, according to the Caixin survey.

New export orders fell at a slower pace as some firms reported an improvement in external demand from November.

While factory owners continued to hold an optimistic view on 2024 outlook, their confidence edged down from November and remained below the…