BEIJING, December 1, 2025: China’s factory activity contracted for the eighth consecutive month in November, signaling ongoing weakness in the manufacturing sector despite a recent easing in trade tensions with the United States. Data released by the National Bureau of Statistics showed the official manufacturing Purchasing Managers’ Index (PMI) edged up slightly to 49.2 in November from 49.0 in October. The figure remained below the 50-point threshold that separates expansion from contraction, underscoring persistent challenges across China’s industrial base.
While the latest reading reflected a modest improvement, the sustained period of contraction points to sluggish momentum in the world’s second-largest economy. Sub-indexes showed marginal gains: production rose to the neutral 50.0 mark, and new orders increased to 49.2, suggesting a limited recovery in domestic activity. The PMI for small-sized manufacturers climbed to 49.1, marking a six-month high and indicating relative resilience among smaller firms. China’s manufacturing sector continues to face a combination of subdued demand, competitive pricing pressures, and weak external orders.
Despite the trade truce between Beijing and Washington earlier this quarter, export growth has yet to show meaningful signs of revival. Many factories remain constrained by cautious business sentiment and constrained consumer spending, as both global and domestic markets recover unevenly from recent economic strains. The continued contraction adds to the broader set of economic headwinds confronting China. The property sector remains under pressure, with sluggish home sales and rising developer defaults dampening overall investment confidence.
Factory sector contracts for eighth consecutive month
At the same time, consumer demand has been slow to rebound, weighing on retail activity and service-sector growth. These factors have collectively limited the pace of recovery that policymakers in Beijing have sought to stabilize through targeted measures. Official data also pointed to a slowdown in non-manufacturing activity. The services PMI slipped to 50.3 in November from 50.8 in October, hovering just above the expansion threshold. Analysts note that this reflects ongoing caution among businesses and households amid uncertain economic conditions and modest income growth.
Despite the prevailing softness, business confidence showed signs of stabilization. The business expectations sub-index rose to 53.1 in November from 52.8 in October, indicating that manufacturers maintain a guarded but positive outlook heading into the final month of the year. The modest rise in expectations suggests that some firms anticipate incremental gains in production and new orders if broader economic conditions begin to improve. China’s leadership has emphasized the importance of maintaining steady growth through a mix of fiscal and monetary support, while also focusing on upgrading industrial capacity and promoting high-tech sectors.
Data underscores fragile recovery in China’s industry
However, official statements have continued to highlight the challenges of sustaining momentum in a complex global environment marked by shifting trade dynamics and uneven recovery in major economies. With the manufacturing PMI below the growth threshold for eight straight months, economists say the data reflects the persistent drag from structural and cyclical pressures. The modest uptick in November offers limited relief but underscores that the sector remains under strain. Further stabilization in output and demand will likely depend on continued policy adjustments and gradual improvement in both domestic consumption and global trade activity.
The latest figures confirm that while China’s manufacturing sector has shown signs of bottoming out, recovery remains fragile. Persistent contraction across key indicators highlights the delicate balance facing the economy as it navigates weak demand, external pressures, and the long-term effects of a shifting industrial landscape, underscoring the continued strain on production capacity, employment, and overall industrial confidence across the country. – By Content Syndication Services.