The RatingDog China General Manufacturing PMI unexpectedly increased to 50.1 in December 2025 from November’s four-month low of 49.9, beating market forecasts of 49.8. The latest reading indicated a slight increase in factory activity, supported by higher inflows of new work despite a modest decline in new export sales. However, the improvement in demand was largely limited to the domestic market amid the government’s efforts to boost spending at home. Meanwhile, purchasing activity stagnated as companies reported sufficient inventories of raw materials and semi-finished products. Despite the rise in new orders, employment fell for the second consecutive month due to both resignations and redundancies amid cost concerns. On the price front, input cost inflation accelerated to a three-month high due to higher raw material prices. Selling prices continued to fall as firms attempted to support sales. Finally, business sentiment weakened amid lingering concerns over the growth outlook.

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