China's manufacturing sector returns to growth in December

(Sharecast News) - China's manufacturing sector returned to growth at the end of the year, according to figures released on Wednesday by the National Bureau of Statistics. The official manufacturing purchasing managers' index rose to 50.1 in December from 49.2 the month before, beating economists' expectations for a flat reading and coming in above the 50.0 mark that separates contraction from expansion.

The composite PMI - which covers manufacturing and services - increased to 50.7 from 49.7. The non-manufacturing PMI - which covers services and construction - rose to 50.2 in December from 49.5 the month before.

Separately, a survey from RatingDog China also showed an improvement in the manufacturing sector.

The RatingDog China general manufacturing PMI rose to 50.1 this month from 49.9 in November. This marked the fourth improvement in the health of the sector over the past five months.

Founder Yao Yu said that on a sub-index basis, slight overall improvements in supply and demand drove the fractional growth.

"Overall, the manufacturing sector regained growth at the end of 2025. However, the improvement was marginal, with the impact of promotions and new products appearing impulse-driven and their sustainability requiring observation.

"Looking ahead, while firms remain confident for 2026, optimism has eased and remains below the historical average. With the Central Economic Work Conference emphasising 'seeking progress while maintaining stability' and addressing 'Involutionary' competition, policy support is expected to facilitate a continued moderate recovery in 2026."