A private gauge of China’s manufacturing sector signaled a contraction in November, highlighting softening growth momentum in the world’s second-largest economy.

The RatingDog China General Manufacturing PMI, compiled by S&P Global, fell to 49.9 last month from 50.6 in October, marking the first deterioration in the sector since July. A reading below 50 indicates contraction, while above 50 signals expansion.

According to RatingDog, growth in Chinese manufacturing production came to a halt as new orders nearly stalled, despite a rise in new export orders. The slowdown prompted manufacturers to cut staffing and reduce purchasing.

“Looking ahead, considering the need to sprint toward the annual 5% growth target, there may be strengthened efforts on both the supply and demand sides at the end of the year,” said Yao Yu, founder of RatingDog. He expects the PMI to show weak expansion in December.

The private survey aligns with the official manufacturing PMI, released Sunday, which showed factory activity contracted for the eighth consecutive month, standing at 49.2 in November, slightly up from 49.0 in October.

With signs of weakness emerging in the Chinese economy, analysts suggest that stronger policy support may be needed to address challenges such as soft domestic consumption.

Attention now turns to the Chinese Communist Party’s Politburo meeting and the Central Economic Work Conference later this month, where the leadership is expected to outline economic priorities for 2026 and possibly signal stimulus measures.