China RatingDog Composite PMI Falls from 3-Month Peak

The RatingDog China General Composite PMI eased to 53.6 in June 2026 from a three-month high of 54.0 in May. Despite the slight moderation, the latest reading remained among the strongest in the past three years, reflecting sustained expansion across both the manufacturing and services sectors. New business increased for a thirteenth consecutive month, with the pace of growth broadly unchanged from May, underscoring resilient underlying demand. Meanwhile, employment rose for a second straight month, marking the first back-to-back increase in payrolls since mid-2023 and pointing to improving labor market conditions. On the price front, input cost inflation slowed to a five-month low, suggesting easing cost pressures for businesses. However, firms continued to pass on higher costs to customers, with output charges rising at the fastest pace since March 2022, indicating stronger pricing power amid solid demand.

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.