BEIJING: China's manufacturing activity expanded for the 10th straight month in December as the recovery in the world's third-largest economy continued to gather pace, official data showed on Friday.

The China Manufacturing PMI, or Purchasing Managers' Index, rose to 56.6 percent in December from 55.2 in November, the China Federation of Logistics and Purchasing said in a statement on its website.

A reading above 50 means the sector is expanding, while a reading below 50 indicates an overall decline.

"The rising index suggests the Chinese economy has further consolidated its recovery," researcher Zhang Liqun said in the statement.

But a pullback in new export orders in December suggested China's key trading partners were still suffering from the impact of the financial crisis, Zhang said.

New export orders slipped one point to 52.6 percent in December from the previous month, the data showed.

"It is too early to be optimistic about the recovery in the global market," Zhang said.

China's export-driven economy is expected to easily exceed the government's oft-stated target of eight percent growth in 2009, mainly as a result of massive stimulus spending to combat the crisis.

The nation's economy expanded by 8.9 percent in the third quarter, up from 7.9 percent in the second quarter and 6.1 percent in the first three months.

In 2008, manufacturing accounted for more than 40 percent of economic output in China, which has been hit hard by evaporating demand for its products in key export markets such as the United States and Europe.

HSBC is due to release its China Manufacturing PMI on Monday.