Business conditions in China's manufacturing sector declined midway through the final quarter of 2025, according to latest PMI' data. Manufacturing production growth came to a halt as new orders nearly stalled in November.

This was despite a renewed rise in new orders from abroad. Consequent of softer new business growth, Chinese manufacturers lowered their staffing and purchasing levels and were cautious with their inventory holdings. That said, business confidence improved since October.

Turning to prices, manufacturers continued to lower their selling prices in November, despite ongoing cost inflation.

The headline seasonally adjusted Purchasing Managers' Index (PMI) fell to 49.9 in November, down from 50.6 in October. Falling below the 50.0 no-change mark, the latest reading signalled the first deterioration in manufacturing sector conditions since July, albeit one that was only marginal.

The softening of new business growth led to renewed job shedding in November. Overall staffing levels fell marginally due to both resignations and redundancies, as part of an effort to rein in costs among manufacturers.

Purchasing activity declined for the first time since June, albeit only fractionally. Meanwhile, due to slower replenishment of input products, stocks of purchases fell for the first time in seven months and at the quickest pace since December 2023.

Average input prices continued to increase for Chinese manufacturers in November. Despite the slowdown in new business growth, business sentiment among Chinese manufacturers improved midway through the fourth quarter.

Powered by Commodity Insights