At a Glance
- Manufacturing PMI rose to 50.1 in December, first expansion in eight months.
- High-tech PMI climbed to 52.5, up 2.4 points from the prior month.
- Small and mid-size firms remain in contraction, with PMI for food, textiles, clothing and electronics above 53.
- Why it matters: The brief uptick shows manufacturers accelerating output before Lunar New Year, but underlying capacity and demand issues persist.
BANGKOK (News Of Austin) – Chinese factory activity expanded for the first time in eight months in December as orders picked up ahead of holidays and builders rushed to finish projects, according to surveys released Wednesday.
PMI Snapshot
The official and private sector PMIs for manufacturing both registered 50.1, just above the 50 threshold that separates expansion from contraction.
- High-tech PMI: 52.5
- Equipment & Consumer Goods PMI: 50.4
- Food, Textiles, Clothing & Electronics PMI: above 53
| Metric | Value |
|---|---|
| Official Manufacturing PMI | 50.1 |
| Private Manufacturing PMI | 50.1 |
| High-tech PMI | 52.5 |
| Equipment & Consumer Goods PMI | 50.4 |
| Food/Textiles/Clothing/Electronics PMI | >53 |
Industry Insights
The RatingDog report noted that while overall orders increased, new export sales fell slightly and hiring weakened.
Yao Yu stated:
> Overall, the manufacturing sector regained growth at the end of 2025,
The report also highlighted that exporters raised prices for the first time in three months to offset higher raw-material costs.
Julian Evans-Pritchard of Capital Economics said:
> The big picture is that the structural headwinds from the property downturn and industrial overcapacity are set to persist in 2026 and there appears to be limited appetite among policymakers for a big increase in demand-side stimulus.
Higher costs for raw materials, especially metals, have pressured profit margins across the sector.
Broader Context
Factory activity for small and mid-size enterprises, which account for the lion’s share of employment, remained in contractionary territory. As consumers cut back on spending, conditions for retailers and restaurants also deteriorated.
Key Takeaways
- China’s manufacturing PMI rose to 50.1 in December, marking the first expansion in eight months.
- High-tech activity surged to 52.5, up 2.4 points.
- Small firms still contract, and structural challenges such as property slump and overcapacity loom.
The brief uptick may be short-lived, as analysts note that government spending only nudged activity and long-term headwinds remain.
