China factory activity edges up in November but remains in contraction
A worker walks past molten steel at a steel mill in Huai’an, east China’s Jiangsu province, on July 22, 2025.
– | Afp | Getty Images
China’s factory activity rose in November but continued to contract for an eighth consecutive month, while services weakened as the boost from previous holidays faded, official data showed on Sunday.
The National Bureau of Statistics said that the manufacturing industry purchasing managers’ index rose to 49.2, an increase of 0.2 points compared to October. The figures were in line with expectations of economists in a Reuters poll but fell short of the 50 points that separate expansion from contraction.
The non-manufacturing business activity index decreased by 0.6 points compared to October to 49.5, while the composite PMI output index decreased to 49.7; This indicates a slight decline in both manufacturing and service activities.
Huo Lihui, chief statistician of the bureau’s Service Industry Research Center, said supply and demand increased moderately in the manufacturing sector, where the production index reached the 50 threshold and new orders rose to 49.2.
Although equipment manufacturing and consumer goods manufacturers fell below 50, high-tech manufacturing continued to grow for the tenth consecutive month at 50.1. Energy-intensive industries recorded a slight recovery to 48.4, up 1.1 points from October.
Small factories recorded the strongest progress. The PMI for small businesses rose to 49.1, the highest level in nearly six months, while medium-sized companies rose to 48.9. Major producers weakened, falling to 49.3.
Confidence in the market increased slightly. The index measuring expectations regarding 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 excitement fades
Non-manufacturing activity, which includes construction and services, was softened and suppressed by services. huo caused the decline This is partly due to the reduced impact of previous holiday-related spending.
China’s Golden Week holiday, which typically sees travel and consumer spending increase before returning to normal in the following months, ran from October 1 to 8 this year.
Service sector activity fell 0.6 points from October to 49.5, but areas of strength remained: rail transport, telecommunications, broadcasting and satellite transmission, and financial services all reported readings above 55.
Property and housing services remained below the 50 level, underscoring persistent weakness in property-related activity. Construction activity increased to 49.6, helped by strong expectations for short-term growth, and the sector’s confidence index rose to 57.9.
Non-manufacturing new orders index fell to 45.7, reflecting weak demand. While input prices increased to 50.4, service sector sales prices were still below 50, but limited their decline.
While employment in the manufacturing industry increased slightly to 48.4, non-manufacturing employment increased marginally to 45.3. Supplier delivery times for factories increased to 50.1.
China surveys about 3,200 manufacturers and 4,300 non-manufacturing firms for monthly PMI readings, which are seasonally adjusted and considered a leading indicator of economic momentum.
trade tensions
China’s manufacturing activity has contracted since April, when US President Donald Trump took office. He introduced new tariffs that squeezed producers.
Industrial profits fell 5.5% in October, the sharpest decline since June and reversing strong gains seen at the end of the summer. Earnings of large industrial companies in the first ten months increased by 1.9%, slowing down compared to January-September.
The overall Chinese economy cooled, with growth falling to 4.8% in the third quarter.
Trade tensions with the US escalated in October, with Washington threatening new 100% tariffs before both sides reached a deal on South Korea at the end of the month. The deal reduced U.S. fentanyl-related tariffs from 20% to 10%, paused Beijing’s rare earth controls for a year, and restarted China’s purchases of American soybeans and other farm products.
Despite the ceasefire, domestic demand remains weak. The prolonged housing crisis and poor working conditions are putting pressure on consumer spending. Policymakers have signaled a long-term push to boost consumption and technology self-sufficiency but have shied away from major new stimulus as the economy remains on track to hit its 5% growth target.
