Factory activity in China slowed slightly in December, data showed Thursday, though it continued to grow as the world's second-largest economy stays on track to recover from the coronavirus crisis.

While the rest of the world has struggled to overcome the deadly virus, China has bounced back from a rare contraction in the first three months of the year and is expected to be the only major economy to avoid a recession this year.

The closely watched Purchasing Managers' Index (PMI) -- a key gauge of manufacturing activity in China -- dipped to 51.9 from 52.1 in November, the National Bureau of Statistics said. It was also slightly lower than the 52.o forecast by analysts.

The dip came as demand for Chinese exports was hit by fresh lockdowns and strict containment measures in key markets including Europe and the United States.

Still, NBS statistician Zhao Qinghe said the country's economic recovery "remained strong".

"The overall manufacturing sector maintained a steady recovery, with the pace at a relatively high level for the year," Zhao said.

The manufacturing PMI collapsed to a record low of 35.7 in February after the virus brought much of China to a standstill but economic recovery helped it bounce back to a three-year high in November.

The International Monetary Fund expects the Chinese economy to expand by 1.9 percent this year.

China's non-manufacturing PMI - a gauge of sentiment in the services sector - fell to 55.7 in December from 56.4 in November.

China has largely curbed the spread of the virus but a series of local outbreaks in cities including Beijing have reduced the number visiting restaurants, cinemas and other public venues.

These mini-outbreaks have also raised fears of reduced economic activity during the Lunar new year holiday in February.

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