China RatingDog Composite PMI Drops from 33-Month Peak

The RatingDog China General Composite PMI rose to 54.0 in May 2026 from 53.1 in the prior month, reaching its highest level since February and signaling a further strengthening in private-sector business activity. The latest reading pointed to the second-fastest pace of expansion in the past two years, amid a stronger services sector and solid growth in manufacturing output. New business increased at the quickest pace in three months, reflecting improving demand conditions across the economy. Outstanding work rose for a fourth month, indicating sustained pressure on business capacity. Employment also edged higher, driven largely by hiring among service providers to meet rising workloads. On the price front, input cost inflation eased for the first time since January, helping to ease the increase in prices charged to customers. Overall cost pressures remained broadly in line with the long-run average, suggesting that inflationary pressures were manageable.

The RatingDog China General Composite PMI rose to 53.1 in April 2026 from March’s three-month low of 51.5, signaling a solid pickup in overall business activity as both manufacturing output and services expanded at a faster pace. Total new business grew more strongly, supported by firmer inflows across both sectors, while outstanding work increased for a third consecutive month, pointing to sustained demand. Employment was broadly stable, slipping only marginally from the previous month. On the price front, cost pressures intensified, with input prices rising at the fastest rate since April 2022, largely driven by manufacturing. Firms responded by raising selling prices, with charge inflation accelerating to a 31-month high, reflecting efforts to pass through higher costs and protect margins.

The 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.