ECONOMY

China Manufacturing Slows as Foreign Demand Declines, Caixin PMI Shows

Published: Jan. 2, 2025 9:45 a.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Activity in China’s manufacturing sector expanded at a slower pace in December, with falling new export orders dragging on overall demand and employment remaining in contraction, a Caixin-sponsored survey showed Thursday.

The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the country’s manufacturing sector, came in at 50.5, compared with 51.5 in November. A reading above 50 indicates an expansion in activity, while a number below that signals a contraction.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

China's manufacturing sector showed slower growth in December, with the Caixin PMI dropping to 50.5 from 51.5 in November, and falling exports affecting demand and employment.
Employment rates continued to contract, with businesses cutting output prices due to competition, despite rising raw material costs.
China's recent stimulus efforts improved market conditions but further time is needed to evaluate their impact, with the economy facing pressures from weak domestic demand and global uncertainties.

AI generated, for reference only

Who’s Who

Caixin Insight Group: Caixin Insight Group is an organization that provides independent analysis of China's economic conditions. Wang Zhe, a senior economist at Caixin Insight Group, comments on China's manufacturing sector and overall economic stability. The group offers insights on various economic indicators, including the Caixin China General Manufacturing PMI, and evaluates the impact of government policies and external factors on the economy.

AI generated, for reference only

What Happened When

May 2025：: Supplier logistics previously were not improving, with delivery times not shortening until December 2025.

Late September 2025：: China started increasing efforts to shore up economic growth with various stimulus measures including cuts to banks' reserve requirement ratio and mortgage rates.