Chinese industry is recovering from the downturn: Manufacturing is growing again and the economy is picking up steam

China's economy at the end of 2025 sent a strong positive signal. Manufacturing activity returned to growth in December, confirming that the country's economic development is gradually accelerating. This is according to fresh data from the National Bureau of Statistics and the China Federation of Logistics and Purchasing.

The Manufacturing Purchasing Managers' Index (PMI) reached 50.1 points in December, an increase of 0.9 points from the previous month. A value above the 50 mark indicates expansion, thus suggesting that Chinese industry has regained growth momentum towards the end of the year.

Positive developments are particularly evident in demand. The new orders index rose to 50.8 points, up 1.6 points month-on-month, reflecting improving market conditions. According to Huo Lihui of the National Bureau of Statistics, enterprises in manufacturing are relying on rising demand as well as more favorable expectations related to economic policy.

Stronger demand was also reflected in production. The production index increased to 51.7 points, a month-on-month increase of 1.7 points. Thus, manufacturing firms are reporting a strong rebound in activity and more stable operations.

The high-tech sector has seen even more dynamic development. The high-tech manufacturing PMI jumped to 52.5 points, up 2.4 points from November, confirming the faster pace of expansion and the growing importance of the new growth engines in the Chinese economy. The positive trend continued in consumer goods manufacturing, where the index reached 50.4 points.

Improvement is not limited to industry. The index of business activity in the non-manufacturing sector rose to 50.2 points, with services themselves recording a further slight strengthening. The overall composite PMI output came in at 50.7 points, confirming that activity across Chinese businesses has expanded from the previous month.

The December data thus indicate a stabilisation and gradual acceleration of the Chinese economy, which enters the new year with a visibly better mood in industry and services.

CMG