Financial News: China Manufacturing Sector Recovers In December

China Manufacturing Sector Recovers In December

12/31/2025 - 00:25:00 (RTTNews)

(RTTNews) - China's manufacturing activity rebounded in December as output returned to growth amid higher inflows of new work, survey data from S&P Global showed on Wednesday.

The RatingDog headline factory Purchasing Managers' Index posted 50.1 in December, up from 49.9 in November. A score above 50.0 indicates expansion.

The score suggested the fourth improvement in the sector over the last five months.

The official survey showed that both manufacturing and non-manufacturing sectors recovered at the end of the year. The factory PMI rose to 50.1 from 49.2 in November, the National Bureau of Statistics said. The score was seen unchanged at 49.2.

Similarly, the non-manufacturing PMI advanced to 50.2 from 49.5 in the previous month. Economists forecast the index to rise slightly to 49.6. S&P survey showed that manufacturing output expanded in December underpinned by higher amounts of new work as the launch of new products and successful business development efforts boosted sales. However, the demand growth was limited to the domestic market.

Despite greater inflows of work, purchasing activity stagnated in December. Stocks of purchases increased after declining in November.

Staffing levels decreased for a second consecutive month in December due to resignations and redundancies.

Higher sales and lower workforce capacity led to another accumulation of backlogged orders. The level of unfinished work grew the most in three months.

Regarding prices, the survey showed that cost burdens increased due to rising raw material prices. Average input prices increased for six consecutive months.

Despite stronger cost pressures, manufacturers continued to reduce their output prices to support sales and clear inventory.

Finally, business confidence remained positive in December. Firms expect business expansion plans and the introduction of new products to underpin growth in sales and production.

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