BEIJING, Dec 16 -- China’s manufacturing activity has grown at the slowest pace in three months in December but also has continued the trend of recovery as the country's economy stabilizes, a preliminary survey showed this morning.

The HSBC Flash China Manufacturing Purchasing Managers' Index, the earliest available indicator of China's industrial sector's vitality, eased to 50.5 in December from November's final index of 50.8, according to HSBC Holdings plc and research firm Markit.

A reading above 50 means expansion. The slowdown was largely due to moderating growth of production and falling employment, but new orders and new export orders both expanded at a faster rate, the survey report showed.

Qu Hongbin, chief economist for China at HSBC and co-head of its Asian Economic Research, said the latest index implied that China's growth recovery was still amid a stabilizing process.

"The December Flash PMI slowed marginally from November's final reading. But it still stands above the average reading for the third quarter, implying that the recovering trend of manufacturing sector starting from July still holds up."

Qu said he expected China's gross domestic product growth would stabilize at around an annualized 7.8 percent in the fourth quarter.

China's economy showed signs of stabilization in the third quarter with its GDP picking up to 7.8 percent from the pace of 7.5 percent in the second quarter.

At last week's annual Central Economic Work Conference, Chinese leaders pledged to maintain stable economic policies next year to sustain growth and thus pave the way for deepening reforms.