In a positive turn for China's economy, the Non-Manufacturing Purchasing Managers Index (PMI) rose to 50.2 in December 2025, a promising recovery from the previous month's 49.5. This key indicator, updated on December 31, 2025, marks a notable shift into expansion territory for the first time in two months, offering a glimmer of hope for the service sector as the year comes to a close.
The rise to 50.2 suggests that the sector has moved beyond stagnation and into modest growth, surpassing the critical 50-point threshold that separates contraction from expansion. This development is a welcome respite after November's figures, which had sunk below the neutral 50 mark, indicating a slight contraction.
Economists and analysts are cautiously optimistic about this development, viewing it as an indicator of underlying resilience in China's non-manufacturing sectors, which include services, construction, and logistics. This upswing could be reflective of increased domestic consumption and a rebound in demand within key service sectors, potentially bolstered by seasonal activity and broader policy measures aimed at stabilizing the economy. The continuous monitoring of PMI figures will be crucial in understanding the broader economic trajectory in the coming months.
