Archive · 6 Jan 2026
Asia's Economic Momentum Uneven in December 2025
In December 2025, China's services sector grew at its slowest pace in six months, while Japan's manufacturing activity stabilized after five months of contraction.
China's services PMI was 52.0, down from 52.1 in November, with new business growth slowing and export business contracting.
Despite this, business sentiment improved, with optimism about 2026.
Meanwhile, Japan's manufacturing PMI reached 50.0, indicating stabilization.
The decline in new orders eased, and some firms reported improved sales.
However, export orders fell, and input price inflation accelerated.
In India, the services sector growth moderated, with the PMI falling from 59.8 in November to 58.0 in December.
New work and export orders rose, but overall sentiment fell to its lowest level in nearly three-and-a-half years.
Both countries face challenges, with China dealing with a fragile economic recovery, Japan facing rising costs and tighter monetary conditions, and India experiencing heightened market uncertainty and concerns around exchange rate movements.
China's services sector grew at its slowest pace in six months in December 2025, with a PMI of 52.0.
Japan's manufacturing activity stabilized in December, with a PMI of 50.0, ending a five-month contraction.
China's new business growth slowed to a six-month low, and export business slipped into contraction.
Business sentiment in China improved to a nine-month high, with optimism about 2026.
Japan's decline in new orders eased, and some firms reported improved sales, but export orders fell.
- Who
- China, Japan, and India
- What
- Economic activity in services and manufacturing sectors
- When
- December 2025
- Where
- Asia (China, Japan, and India)
- Why
- Global uncertainty and domestic economic challenges
- China Services PMI
- 52.0 in December, down from 52.1 in November
- Japan Manufacturing PMI
- 50.0 in December, up from 48.7 in November
- China New Business Growth
- Slowed to a six-month low
- China New Export Business
- Slipped into contraction
- China Business Sentiment
- Improved to a nine-month high
- Japan New Orders Decline
- Eased to its slowest pace since May 2024
- Japan Export Orders
- Fell at a slightly softer pace
- Japan Business Sentiment
- Eased from November but remained above long-run average
- India Services PMI
- 58.0 in December, down from 59.8 in November
- India New Work and Export Orders
- Rose at above-trend rates with gains from Asia, North America, the Middle East, and the UK
- India Inflation Rates
- Remained below long-run averages
- India Business Sentiment
- Slipped to a 41-month low
Sources
Asia factory and services output cools as China slows and Japan stabilises at year-end
India’s services PMI slips to 58 in December, growth hits 11-month low
India's service sector growth remains ‘strong’, HSBC PMI at 58: Report
India's service sector growth remains ‘strong’, HSBC PMI at 58: Report
India’s services sector activity eases in Dec amid softer expansion in new business: PMI
HSBC India Services PMI falls to 58 in December, slowest growth in 11 months
India's services sector growth Slows to 11-month low in December: PMI - Telegraph India
Services sector growth hits 11-month low, PMI shows
