China RatingDog Composite PMI Rises to 3-Month Peak

China’s RatingDog China General Composite PMI fell to 51.5 in March 2026 from February’s 33-month high of 55.4. Despite the decline, the reading remained broadly in line with the two-year average, indicating continued expansion with growth still supported across manufacturing and services. Total new orders rose at a slower pace, though gains in both sectors helped sustain overall demand. Backlogs of work increased at the fastest rate in six months, pointing to rising capacity pressures. Employment, however, continued to edge lower overall, as gains in manufacturing jobs were not enough to offset declines elsewhere. On the price front, input cost inflation accelerated to its strongest level since May 2022, largely driven by a sharp rise in manufacturing costs. Meanwhile, output charge inflation eased slightly from February and remained close to its long-run average.

The RatingDog China General Composite PMI rose to 55.4 in February 2026 from 51.6 in January, marking the fastest expansion in overall private-sector activity since May 2023. Output growth accelerated across both the manufacturing and services sectors, while total new business also increased at a quicker pace, supported by stronger growth in new export work. Backlogs of work began to accumulate again, as renewed job shedding was observed in the services sector. Meanwhile, price pressures intensified, with input costs and output charges rising at the fastest pace in 20 and 28 months, respectively.

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.