A worker walks past molten steel at a steel factory in Huai’an, in China’s eastern Jiangsu province on July 22, 2025.
– | Afp | Getty Images
China’s factory activity edged higher in November but remained stuck in contraction for the eighth consecutive month, while services weakened as the boost from earlier holidays faded, according to official data released Sunday.
The manufacturing purchasing managers’ index rose to 49.2, up 0.2 points from October, the National Bureau of Statistics said. The figures were in line with economists’ expectations in a Reuters poll, but remained below the 50-point mark that separates expansion from contraction.
The non-manufacturing business activity index fell to 49.5, down 0.6 points from October, while the composite PMI output index eased to 49.7, indicating a slight pullback in both manufacturing and services activities.
Supply and demand in manufacturing improved modestly, said Huo Lihui, chief statistician at the bureau’s Service Industry Survey Center, with the production index reaching the 50 threshold and new orders rising to 49.2.
High-tech manufacturing stayed in expansion for a tenth straight month at 50.1, even as equipment manufacturing and consumer goods producers slipped below 50. Energy-intensive industries posted a mild rebound to 48.4, up 1.1 percentage points from October.
Business activity for small enterprises recorded a significant rebound. The PMI for small enterprises jumped 2 percentage points to 49.1, its highest in nearly six months, while medium-sized firms edged up to 48.9. Large manufacturers weakened, falling to 49.3.
Market confidence showed a slight uptick. The index measuring expectations for production and operations rose to 53.1. Industries including non-ferrous metal smelting and aerospace-related equipment reported particularly strong sentiment, with readings above 57.
Holiday boost fades
Non-manufacturing activity, covering construction and services, softened, weighed down by services. Huo attributed the decline partly to the fading impact of earlier holiday-driven spending.
China’s Golden Week holiday, which typically lifts travel and consumer spending before activity normalizes in the following months, ran from Oct. 1 to 8 this year.
Service-sector activity fell to 49.5, down 0.6 percentage points from October, though pockets of strength remained: railway transportation, telecommunications, broadcasting and satellite transmission, and financial services all posted readings above 55.
Real estate and residential services continued to lag below the 50 mark, underscoring persistent weakness in property-related activity. Construction activity improved to 49.6, aided by stronger expectations for near-term growth, with that sector’s sentiment index climbing to 57.9.
The non-manufacturing new orders index slipped to 45.7, reflecting softer demand. Input prices rose to 50.4, and service-sector sales prices, while still below 50, narrowed their decline.
Manufacturing employment ticked up slightly to 48.4, while non-manufacturing employment rose marginally to 45.3. Supplier delivery times for factories improved to 50.1.
China surveys roughly 3,200 manufacturers and 4,300 non-manufacturing firms for the monthly PMI readings, which are seasonally adjusted and considered a leading indicator for economic momentum.
Trade strains
China’s manufacturing activity has contracted since April, when U.S. President Donald Trump launched new tariffs that squeezed producers.
Industrial profits fell 5.5% in October, the sharpest drop since June, reversing the strong gains seen in late summer. Earnings for the first ten months at major industrial firms rose 1.9%, slowing from the January–September pace.
The broader Chinese economy has cooled as growth slipped to 4.8% in the third quarter.
Trade tensions with the U.S. spiked in October as Washington threatened new 100% tariffs before both sides reached a late-month deal in South Korea. The agreement cut U.S. fentanyl-linked tariffs to 10% from 20%, paused Beijing’s rare-earth controls for a year and reopened China’s purchases of American soybeans and other farm goods.
Despite the truce, demand at home remains soft. A drawn-out property slump and weak labor conditions are weighing on consumer spending. Policymakers have signaled a longer-term push to lift consumption and tech self-reliance but have avoided major new stimulus as the economy remains on track to meet its 5% growth target.
