China RatingDog Composite PMI Falls to 4-Month Low

The RatingDog China General Composite PMI rose to 51.6 in January 2026 from 51.3 in the previous month, marking the highest reading since October. The index also signaled an eighth consecutive month of expansion in private-sector activity, as output growth accelerated across both the manufacturing and services sectors ahead of the Spring Festival. Total new business increased at a faster pace, supported by a renewed rise in overseas demand. Firms resumed hiring, which helped reduce outstanding business volumes. Meanwhile, composite output charges increased for the first time in 14 months, reflecting continued rises in input costs, although the pace of cost inflation eased compared with December.

The RatingDog China General Composite PMI inched up to 51.3 in December 2025 from November's four-month low of 51.2, marking a seventh consecutive month of expansion in private-sector activity. The modest improvement was supported by stronger services activity alongside a renewed increase in factory output. Total new orders rose, although the pace of growth slowed to a six-month low as export orders declined again, highlighting ongoing weakness in external demand. Meanwhile, employment continued to contract, with firms shedding jobs amid muted capacity pressures and still-subdued business confidence. On the pricing front, selling prices fell for another month, reflecting efforts to support demand in a competitive environment, even as cost pressures intensified slightly.

The RatingDog China General Composite PMI slipped to 51.2 in November 2025 from 51.8 in the previous month, marking its lowest level since July but still indicating private-sector expansion for the sixth consecutive month. The moderation reflected stagnant manufacturing output and a milder increase in services activity. Total new business rose at a softer pace, even as new export orders returned to growth. Meanwhile, firms continued to cut jobs amid subdued capacity pressures. On the price front, average input costs increased for a fifth straight month, but output charges fell again, suggesting firms were unable to fully pass on higher expenses. Business confidence also weakened, dropping to a seven-month low.