Marketplace Morning Report Factory output in China falls yet again
Dec 1, 2025
Nick Marsh, a BBC correspondent specializing in Chinese economics, discusses alarming trends in China's manufacturing sector, highlighting an eighth consecutive month of contraction and implications for domestic demand. Bering Tajdin, a journalist from the BBC's Persian service, explores the dire situation in Iran, where unprecedented drought has led to record-low rainfall and severe water shortages in Tehran. They touch on the wider economic and social consequences, from blackouts to drastic proposals like relocating the capital.
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Manufacturing Slump Persists
- China's manufacturing PMI contracted for an eighth consecutive month, signaling sustained weakness in factory output.
- The private survey was worse than official data and reflects stress among smaller, export-oriented firms.
Private Survey Paints A Worse Picture
- The private PMI focuses more on smaller firms and exports, making its weaker reading especially concerning for policymakers.
- That suggests ground-level activity is worse than headline official figures indicate.
Trade War Hits Exports But Not Entirely
- Exports to the U.S. have fallen due to trade tensions, and pivoting to other markets hasn't fully offset the loss.
- China remains resilient in global supply chains but faces compounding external and domestic headwinds.