Archive · 1 Dec 2025
China's Factory Activity Shrinks in November
China's factories are having a tough time.
They've been shrinking for eight months now, and in November, the services part of the economy also started to slow down.
This is making it hard for the people in charge to decide whether to make big changes to help the economy or to give it a quick boost.
The problem is that the world economy is slow, there's a big problem with real estate, and local governments have a lot of debt.
They know they need to make changes to fix these problems, but they also know it will be hard and might cause some political issues, especially with the trade war with the U.S. making things even tougher.
China's factory activity shrank for the eighth consecutive month in November, with the manufacturing PMI at 49.2.
Services activity cooled, with the non-manufacturing PMI falling to 49.5 and the services PMI dropping below 50.
New orders and export orders improved but remained below the 50-point mark.
Policymakers face a dilemma between structural reforms and stimulus to boost domestic demand.
China's economic growth slowed to its weakest pace in a year in the third quarter.
- Who
- China's policymakers and manufacturers
- What
- Shrinking factory activity and cooling services activity
- When
- November 2025
- Where
- China
- Why
- Difficulty in sustaining post-COVID recovery and trade war with the U.S.
Structural Reforms
Stimulus Measures
Economic Strategy
Structural Reforms
Policymakers should focus on long-term structural reforms to address underlying economic issues.
Stimulus Measures
Immediate stimulus measures are needed to boost domestic demand and support economic growth.
- Manufacturing PMI
- 49.2
- Non-manufacturing PMI
- 49.5
- Services PMI
- Below 50
- October Manufacturing PMI
- 49.0
- October Non-manufacturing PMI
- 50.1
- October Services PMI
- Above 50
- Forecasted Private-sector PMI
- 50.5
- Previous Private-sector PMI
- 50.6
Sources
China's factory activity shrinks again in November, services activity cools
Manufacturing PMI slows to 56.6 in November; exports weaken, Job creation at 21-month low
India’s Manufacturing Industry Registers Another Round Of Impressive Growth, Total New Orders & Output Expand At Above-Trend Rates
India's mfg sector activity falls to 9-month low in Nov
Job creation falls to 21-month low in India