Hong Kong (CNN Business) China's slowing economy is ending 2018 on a sour note.

The country's huge factory sector contracted in December for the first time in two and a half years, according to government data published on Monday. It's the latest sign of weaker momentum in the world's second-biggest economy.

The official purchasing managers index slumped to 49.4 during the month, which was lower than what economists polled by Reuters had forecast. A reading below 50 indicates that manufacturing activity contracted compared to the previous month.

China's economy is feeling the effects of a darkening trade outlook and government attempts to rein in risky lending after a rapid rise in debt levels. Growth in 2018 is set to be the weakest since 1990. Analysts expect that next year could be even worse

In recent months data has suggested that factories are seeing a slowdown in export orders amid trade tensions between the United States and China.

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