China Factory Activity Returns to Growth

2026-09-30 01:38 By Chusnul Chotimah 1 min. read

China’s official NBS Manufacturing PMI rose to 50.1 in September 2026 from 49.8 in August, in line with market expectations.

It was the first expansion in factory activity since June, driven by continued growth in demand.

Output growth accelerated to a nine-month high (51.7 vs 50.4 in August), while new orders continued to increase, though at a slightly slower pace (50.5 vs 50.6).

Meanwhile, employment continued to decline (48.4 vs 48.7).

Raw material inventories continued to decline (48.2 vs. 48.1), while supplier delivery times were steady at 50.1.

Meanwhile, foreign orders continued to decline (49.2 vs. 48.6), while purchasing activity rose at a faster pace (51.0 vs 50.5).

Price pressures intensified, with both input costs (60.8 vs 56.6) and output prices (54.0 vs 50.4) accelerating to five-month highs.

Finally, business sentiment remained at a five-month low (53.8), suggesting that firms remained cautious about the near-term outlook



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China Factory Activity Returns to Growth
China’s official NBS Manufacturing PMI rose to 50.1 in September 2026 from 49.8 in August, in line with market expectations. It was the first expansion in factory activity since June, driven by continued growth in demand. Output growth accelerated to a nine-month high (51.7 vs 50.4 in August), while new orders continued to increase, though at a slightly slower pace (50.5 vs 50.6). Meanwhile, employment continued to decline (48.4 vs 48.7). Raw material inventories continued to decline (48.2 vs. 48.1), while supplier delivery times were steady at 50.1. Meanwhile, foreign orders continued to decline (49.2 vs. 48.6), while purchasing activity rose at a faster pace (51.0 vs 50.5). Price pressures intensified, with both input costs (60.8 vs 56.6) and output prices (54.0 vs 50.4) accelerating to five-month highs. Finally, business sentiment remained at a five-month low (53.8), suggesting that firms remained cautious about the near-term outlook
2026-09-30
China Manufacturing Contraction Eases in August
China’s official NBS Manufacturing PMI rose to 49.8 in August 2026 from 49.2 in July, beating market expectations of 49.7. The reading marked a second consecutive month of contraction, although the pace eased amid a recovery in demand. Output (50.4 vs. 49.9 in July) and new orders (50.6 vs. 48.5) both returned to expansionary territory, while employment remained in contraction, with the sub-index falling to 48.7 from 49.0. Raw material inventories also continued to decline (48.1 vs. 48.3), while supplier delivery times shortened for the first time in seven months (50.1 vs. 49.5). Price pressures intensified, with input costs rising at their fastest pace in three months (56.6 vs. 53.2). Output prices also returned to growth (50.4 vs. 47.8) after declining in July. Meanwhile, business sentiment weakened to a five-month low of 53.8, down from 54.1, suggesting that firms remained cautious about the near-term outlook.
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China Factory Activity Unexpectedly Contracts
China’s official NBS Manufacturing PMI unexpectedly declined to 49.2 in July 2026 from 50.3 in the previous month, below market expectations of 50.0. It was the first contraction in factory activity since February, amid persistently weak domestic and external demand and elevated production costs. Output shrank for the first time in five months (49.9 vs 51.4 in June), while new orders contracted after expanding in the previous month (48.5 vs 51.2), with foreign orders also returning to contraction (49.6 vs 50.1). However, employment remained subdued (49.0 vs 48.5), while purchasing activity returned to contraction (49.4 vs 51.4) and supplier delivery times lengthened further (49.5 vs 49.9). On the price front, input cost inflation eased but remained elevated (53.2 vs 54.2), while output prices fell by the most in nine months (47.8 vs 48.2). Finally, business sentiment weakened slightly (54.1 vs 54.3).
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