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China’s Factory Slump Extends to November as Services Turn Negative

Weak domestic demand tied to the property slump is stalling any post‑truce rebound.

Overview

  • Official manufacturing PMI was 49.2 in November, marking an eighth straight month of contraction with new orders and export orders still below 50.
  • The non‑manufacturing gauge fell to 49.5, its first contraction since December 2022, as the holiday boost faded and property‑linked services stayed weak.
  • A private S&P Global/RatingDog survey showed the manufacturing PMI at 49.9, missing forecasts, with output stalling, softer new orders, renewed job cuts and the quickest inventory drawdown in nearly a year.
  • The late‑October U.S.–China trade truce coincided with the fastest rise in export orders in eight months, yet export prices slipped and the lift was insufficient to offset domestic softness.
  • Investors are watching December policy meetings for signals on support as Beijing balances potential stimulus with longer‑term reforms and strained local finances.