An employee works on the production line of power batteries and box chassis for new energy vehicles at a workshop on July 11, 2025 in Huaibei, Anhui Province of China.<\/p>\n
Li Xin | Visual China Group | Getty Images<\/p>\n
China’s economy ended the year on a slightly less gloomy note, as factory activity expanded in December for the first time since March, beating expectations, according to official data released Wednesday.<\/p>\n
The official manufacturing purchasing managers index rose to 50.1 in December, above the 49.2 forecast by economists polled by Reuters, and higher than 49.2 in November. A reading above 50 indicates expansion.<\/p>\n
The composite PMI, a broader measure that tracks activity across manufacturing and services, climbed to 50.7 from 49.7 in November, pointing to broader improvement across the economy.<\/p>\n
China’s non-manufacturing PMI, which covers services and construction, increased to 50.2 from 49.5 in November.<\/p>\n
Huo Lihui, chief statistician from China’s\u00a0National Bureau of Statistics,<\/a>\u00a0said that new orders rose in December, signaling a “significant expansion” in both production and demand in manufacturing.<\/p>\n Private-sector data showed a similar trend. A separate PMI from independent research firm RatingDog <\/a>showed manufacturing activity rising to 50.1 from 49.9, beating expectations of 49.8. <\/p>\n Yao Yu, founder at RatingDog, said the reading indicated the manufacturing sector had returned to expansion. He noted that total new orders grew for a seventh consecutive month, supported by domestic new product launches and business development, leading to growth in production.<\/p>\n However, Yao said that while firms remain confident for 2026, optimism has eased and remained below the historical average.<\/p>\n Large enterprises drove the improvement, with their PMI rising to 50.8, up 1.5 percentage points from the previous month, data from China’s National Bureau of Statistics showed<\/a>.<\/p>\n Activity among smaller firms remained weaker. The PMI for medium-sized enterprises rose to 49.8, while the index for small enterprises fell to 48.6, down 0.5 percentage points from November.<\/p>\n Markets were mixed after the release. Hong Kong’s Hang Seng index<\/a> fell 0.83%, while the mainland’s CSI 300 rose 0.33%. <\/p>\n The data followed a decision by China’s central bank earlier this week<\/a> to keep loan prime rates unchanged<\/a>, despite weak economic data and an extended slump in the property sector plaguing the world’s second-largest economy.<\/p>\n November’s retail sales and industrial output\u00a0missed expectations<\/a>, while investment in fixed assets also contracted. <\/p>\n