Marketplace All-in-One Factory output in China falls yet again
Dec 1, 2025
Nick Marsh, a BBC correspondent, analyzes the surprising contraction of China's manufacturing sector, highlighting the implications of the latest Purchasing Managers Index. He discusses how weak domestic demand and housing crises are stifling growth. Meanwhile, journalist Bering Tajdin sheds light on Iran's dire water crisis caused by unprecedented drought, detailing the economic impacts, including blackouts and government shutdowns. He also explores the controversial proposal to move Tehran, weighing its challenges against the backdrop of infrastructural collapse.
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China's Manufacturing Slump Persists
- China's manufacturing contraction continued for an eighth straight month, signaling persistent weakness in production.
- Nick Marsh highlights that both official and private PMIs show broad slumping activity, especially among smaller firms.
Weak Domestic Demand Is Central
- Weak domestic demand, not just trade tensions, is a key driver of China's slowdown.
- Nick Marsh points to housing sector losses and price wars as reasons consumers aren't spending enough.
Trade War Played A Role But Isn't Sole Cause
- Trade tensions with the U.S. have reduced exports but haven't fully explained the slump.
- China has pivoted to other markets, yet that hasn't made up the shortfall, keeping external risks relevant.