China's factories bounce back after months of slowdown

Business Dec 31, 2025

China's manufacturing scene finally picked up in December, with the key PMI number nudging up to 50.1—just enough to signal growth after eight months of decline.
While that's a positive sign, other parts of the economy, like investment and consumer spending, still looked pretty sluggish in November.

What this means for China's economy

Analysts think China can hit its 5% growth target for 2025 but suggest more support might be needed.
President Xi is urging a focus on quality rather than pace of growth and has signaled a crackdown on reckless projects.
Even construction and services saw a slight boost last month.
Still, challenges remain—especially with slow industrial output and ongoing troubles in the property sector—so it's not all smooth sailing yet.