East Asia Econ

China – more data puzzles

The official composite output PMI in November fell below 50. That wasn't because of FAI: the industrial PMIs were stable. Rather, it was weakness in services. That is puzzling. For now, the one concrete indicator from today's inflation is actually positive: deflation isn't getting worse.

Paul Cavey

Nov 30, 2025 • 3 min read

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East Asia Today

Today's charts cover October services trade and the implications for China's GDP growth in Q4; Tokyo inflation (showing stronger rents), and retail sales in Japan; weak October activity in Korea; and yet another round of strong GDP data in Taiwan.

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Taiwan – everything revised up, except inflation

In today's GDP release, the government raised estimated growth for Q1, Q2, and Q3. The FY forecast was raised by almost 3ppts to 7.4%. But because of AI, officials remain bullish about the outlook, and so raised the forecast for 2026 as well, And yet, none of this is expected to impact inflation.

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Korea – still no clear lift in growth

The BOK's revisions to the GDP outlook yesterday were modest. But in today's October output data, there's little sign of any improvement at all. The data are affected by the long Chuseok holiday, and will likely look better through year-end. Still, it is clear the economy still faces headwinds.