China’s economic concerns deepened in November as official data confirmed that the country’s manufacturing sector contracted for the eighth straight month, even as India reported a sharp 8.2 per cent GDP expansion in the second quarter.
According to official data released on Sunday, China’s manufacturing purchasing managers index (PMI) edged up to 49.2 in November from 49 in October, but remained below the 50-point threshold that separates growth from contraction.
The reading was broadly in line with market expectations and signalled that the world’s second-largest economy continues to struggle despite a recent easing in US-China trade tensions.
Beijing had hoped that a US tariff cut announced earlier this month, following President Donald Trump’s meeting with President Xi Jinping in South Korea, would help restore momentum to Chinese exports.
While the move may marginally lift competitiveness in the US market, analysts say it is still too early to gauge any sustained revival in outbound shipments.
Weakness in China’s property sector continues to drag down household sentiment, with falling home prices and subdued real estate investment weighing on broader economic activity. Fierce domestic price competition in industries such as automobiles has added further stress on manufacturers.
Economists argue that more government support will be necessary to stabilise growth, but policymakers in Beijing appear reluctant to roll out fresh measures.
Earlier stimulus, including trade-in subsidies for home appliances and electric vehicles, is now being phased out, raising concerns that domestic demand could soften further.
China has set a full-year growth target of around 5 per cent for 2025, after posting 4.8 per cent expansion in the July–September quarter. Analysts note that meeting this target may still be possible with limited additional support.
