China manufacturing activity expands for the first time since March, beating expectations
An employee works on a production line of power batteries and box chassis for new energy vehicles at a workshop in Huaibei, Anhui Province, China, on July 11, 2025.
Li Xin | Visual China Group | Getty Images
China’s economy ended the year on a slightly less gloomy note, according to official data released on Wednesday; Factory activity expanded in December, exceeding expectations for the first time since March.
The official manufacturing industry purchasing managers’ index rose to 50.1 in December, above the 49.2 forecast of economists participating in the Reuters survey, and above 49.2 in November. A reading above 50 indicates expansion.
The composite PMI, a broader measure that tracks activity across manufacturing and services, rose to 50.7 from 49.7 in November, pointing to a broader improvement across the economy.
China’s non-manufacturing PMI, which includes services and construction, rose from 49.5 to 50.2 in November.
Large businesses led the recovery, with their PMI rising 1.5 points month-on-month to 50.8. China National Bureau of Statistics showed.
Activity among smaller firms remained weak. While the PMI for medium-sized enterprises increased to 49.8, the index for small enterprises decreased by 0.5 points compared to November, falling to 48.6.
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