China's factory activity snaps record slump on festive stockpiling

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>By Joe Cash and Xiuhao ChenWed, December 31, 2025 at 8:27 AM GMT+1 4 min readBy Joe Cash and Xiuhao ChenBEIJING, Dec 31 (Reuters) - China's factory activity unexpectedly grew in December, snapping a record eight straight months of decline, lifted by a rise in pre-holiday orders as officials seek to spur the $19 trillion economy's manufacturing sector without worsening deflation.The official ​purchasing managers' index (PMI) rose to 50.1 in December from 49.2 in November, the National Bureau of Statistics' survey showed on Wednesday, topping the ‌50-point mark separating growth from contraction and beating a forecast of 49.2 in a Reuters poll."Assuming the improvement in the PMIs is borne out in the hard data, we think it will likely be ‌a short-lived upturn in activity on the back of month-to-month swings in fiscal spending rather than the start of a more sustained pick-up," said Julian Evans-Pritchard, head of China economics at Capital Economics."The big picture is that the structural headwinds from the property downturn and industrial overcapacity are set to persist in 2026," he added.Still, the data should give policymakers cause for optimism after choosing to see out 2025 without major additional stimulus to meet the full-year growth target of around 5%.The production sub-index jumped ⁠to 51.7 from 50.0 in November, while new orders ‌climbed to 50.8 from 49.2, marking their strongest performance since March. Supplier delivery times also improved, pushing the production and activity expectations component to 55.5, its highest reading since March 2024.New export orders remained sluggish, however, edging up to 49.0 from November's ‍47.6, underscoring the need for officials to boost domestic demand and rely less on U.S. demand, the world's top consumer market, in the face of President Donald Trump's tariffs.Huo Lihui, an NBS statistician, said confidence appeared to be improving due to pre-holiday stockpiling, as the world's second-largest economy prepares to celebrate the Lunar New Year in February, pointing to an uptick ​in the agricultural, food processing and food and beverage sectors.A separate private-sector PMI published on Wednesday also showed marginal expansion in activity in December, driven ‌by stronger production and domestic demand in the absence of more foreign orders.DEPRESSED DOMESTIC DEMANDGinning up domestic manufacturing without taking further steps to boost consumer demand risks worsening deflationary pressures, however.In separate data released last week, Chinese industrial firms saw their profits fall 13.1% year-on-year in November, the steepest drop in over a year, suggesting households are not stepping in to pick up the shortfall as a slowing global economy weighs on exports.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,845.50 -50.74 (-0.74%)Dow 3048,063.29 -303.77 (-0.63%)Nasdaq23,241.99 -177.09 (-0.76%)Russell 20002,481.91 -18.68 (-0.75%)VIX14.95 0.00 (0.00%)Gold4,332.10 -9.00 (-0.21%)Trending tickersBTC-USD Bitcoin USD 87,984.60 +154.05 (+0.18%)ETH-USD Ethereum USD 2,982.51 +3.83 (+0.13%)XRP-USD XRP USD 1.86 +0.03 (+1.46%)IEP Icahn Enterprises L.P. 7.55 +0.25 (+3.42%)DOGE-USD Dogecoin USD 0.12 +0.01 (+5.82%)PortfolioSign in to access your portfolioSign inTop gainersAXSM Axsome Therapeutics, Inc. 182.64 +33.85 (+22.75%)PSNY Polestar Automotive Holding UK PLC 21.37 +1.88 (+9.65%)ONDS Ondas Holdings Inc. 9.76 +0.77 (+8.57%)DJT Trump Media & Technology Group Corp. 13.24 +0.67 (+5.33%)PBF PBF Energy Inc. 27.12 +1.08 (+4.15%)Top losersCORT Corcept Therapeutics Incorporated 34.80 -35.40 (-50.42%)QXO QXO, Inc. 19.29 -1.75 (-8.32%)RGC Regencell Bioscience Holdings Limited 21.00 -1.90 (-8.30%)NIO NIO Inc. 5.10 -0.40 (-7.27%)PSLV Sprott Physical Silver Trust 23.65 -1.57 (-6.23%)Most activeONDS Ondas Holdings Inc. 9.76 +0.77 (+8.57%)NVDA NVIDIA Corporation 186.50 -1.04 (-0.55%)PLUG Plug Power Inc. 1.9700 +0.0350 (+1.81%)NIO NIO Inc. 5.10 -0.40 (-7.27%)TSLA Tesla, Inc. 449.72 -4.52 (-1.00%)Top economic eventsEarnings eventsMy earnings eventsEarnings events