China Manufacturing Activity Expands for First Time Since March

China's economy ended the year on a slightly less gloomy note as key economic indicators showed improvement in December. Manufacturing activity expanded for the first time since March, marking a significant shift in the industrial sector's trajectory.

The recovery was not limited to manufacturing alone. Services and construction activity also improved during the month, creating a broad-based positive trend across major sectors of the Chinese economy. These developments suggest a potential stabilization as the year concluded.

China's manufacturing activity expanded in December for the first time since March, representing a notable turnaround for the country's industrial sector. The expansion indicates that factory output and new orders likely increased, reversing the contraction trend that had persisted for several months.

This manufacturing improvement is particularly significant as it often serves as a key indicator of overall economic health. The timing of this expansion, occurring at the year's end, suggests potential momentum carrying into the new year.

The economic improvement extended beyond manufacturing to include both services and construction sectors. Services activity showed gains in December, indicating stronger consumer and business activity in the services economy.

Construction activity also improved during the month, suggesting increased infrastructure development and real estate activity. The simultaneous improvement across these three major sectors - manufacturing, services, and construction - points to a broader economic recovery rather than isolated sector growth.

China's economy concluded the year with improved momentum across key sectors, suggesting a less gloomy economic environment as 2025 ended. The December data provides encouraging signals for economic stability heading into the new year.

The combined improvements in manufacturing, services, and construction activity indicate that China's economy may be finding firmer footing after months of uncertainty. This positive trend at year-end could influence economic planning and policy considerations for the upcoming year.