Marketplace Morning Report — "Factory output in China falls yet again"

Host: William Lee Adams (Marketplace, BBC World Service)
Date: December 1, 2025
Episode Focus:
An exploration of concerning new data from China’s manufacturing sector, suggesting protracted economic weakness, plus brief updates on major global business stories.

Episode Overview

This episode centers on troubling economic signals from China, where factory output has contracted for an eighth consecutive month—a key indicator for the world’s second-largest economy. The discussion, featuring BBC’s Nick Marsh, investigates both domestic and external factors behind China’s industrial slump, then pivots to a global roundup including a massive data breach in South Korea, turbulence in the crypto market, and severe drought in Iran.

Key Discussion Points

1. China’s Persistent Manufacturing Slump

(01:14 — 04:08)

• Factory Output Contraction:

  • Recent data (both government and reputable private surveys) show Chinese manufacturing activity—the Purchasing Managers Index (PMI)—declined again in November, marking eight straight months of contraction.
  • The private survey, focused more on smaller firms and exports, reports even worse numbers than official figures.

• Economic Implications:

  • Manufacturing is pivotal for China; continued declines signal trouble for both the domestic economy and global supply chains.

• Notable Quotes:

  • "Factories in China have long been an engine of economic growth, so it’s rather worrying for leaders in Beijing that a new survey shows activity unexpectedly contracted in November." — William Lee Adams [01:19]
  • "By both metrics, William, things are looking quite sluggish in the Chinese economy." — Nick Marsh [02:34]

2. Causes Behind the Downturn: Trade Wars and Domestic Demand

(02:48 — 04:08)

• External Factors:

  • The US-China trade war has hurt exports to the US; China’s pivot to Europe and Southeast Asia hasn’t compensated for losses.
  • Despite strong supply chains, external demand alone isn’t enough to drive recovery.

• Domestic Troubles:

  • Lackluster domestic demand and a severe housing crisis have left consumers materially poorer.
  • Goods gluts and government-led price wars further exacerbate weak internal spending.

• Notable Quotes:

  • "The real concern is going to be the domestic. The data shows this... demand is too low, people aren’t spending enough. Partly that’s down to a big housing crisis." — Nick Marsh [03:19]
  • "You’ve got the domestic demand problem, and then you’ve got this annoying external circumstances of the trade war." — Nick Marsh [03:54]

3. Global Business Briefs

(04:09 — 05:23)

• South Korea’s Coupang: A massive data breach may have exposed nearly 34 million customer accounts.
• Bitcoin Volatility: Bitcoin plunged 6% in a day, ending November down over 16% as the broader crypto market reels.
• Airbus Planes Grounded Briefly: Over 6,000 planes were checked after concerns that solar radiation could disrupt computers, with under 100 still awaiting a fix.
• Greece’s Livestock Disease: An outbreak is leading to the culling of hundreds of thousands of sheep and goats, threatening feta cheese production and exports.

4. Iran’s Water Crisis and Economic Stress

(05:23 — 07:48)

• Unprecedented Drought:

  • Tehran and surrounding areas face historically low rainfall and critically depleted reservoirs.
  • The government is closing offices, banks, and even private businesses to conserve water and energy.

• Wider Economic Strains:

  • Businesses already endure rolling blackouts and gas shortages.
  • Drought compounds existing supply and productivity challenges.

• Notable Quotes:

  • "The annual rainfall is something like 40% below the normal long–term average... many dams that supply Tehran have run out of water." — Baring Tajdan [06:12]
  • "One solution that has been floated frankly for many decades is to take capital out of Tehran, move it to another city. But... there isn’t a perfect candidate." — Baring Tajdan [07:12]
  • "It’s been a pipe dream for many government. It has never materialized, not just because of the cost, but because there isn’t a perfect candidate.” — Baring Tajdan [07:37]

Memorable Moments & Quotes

• On China’s economic engine:
  "Factories in China have long been an engine of economic growth, so it’s rather worrying...that a new survey shows activity unexpectedly contracted in November." — William Lee Adams [01:19]
• On persistent problems:
  "Things are looking quite sluggish in the Chinese economy." — Nick Marsh [02:34]
• Drought in Iran:
  "The government has taken measures such as shutting down the government offices, the banks and even private sector in order to reduce the consumption of water, electricity, and gas." — Baring Tajdan [06:34]

Key Timestamps

• 01:14 – Start of China manufacturing segment
• 01:40 – Nick Marsh introduces latest data
• 02:48 – Analysis of trade war impact and domestic factors
• 04:09 – Global business briefs: Coupang, Bitcoin, Airbus, Greece
• 05:23 – Iran’s drought and infrastructure crisis
• 07:46 – End of Iran segment

Summary

In less than 10 minutes, this Marketplace episode provides a sharp look at China’s ongoing industrial woes, framing them as both a domestic consumption and global trade issue, before swiftly surveying major economic headlines across South Korea, Europe, and Iran. Expert commentary reveals the interconnectedness—and vulnerabilities—of today’s global markets.