China Private Sector Growth at 3-Month Low

The RatingDog China General Composite PMI edged down to 52.0 in October 2026 from 52.4 in the previous month, marking its lowest reading since July and signaling a slower expansion in private-sector activity. Faster manufacturing output growth was insufficient to offset a softer expansion in services. Total new business and new export orders continued to rise, supporting higher services employment, although growth across these indicators eased slightly from the previous month. Meanwhile, average output prices declined as manufacturers and service providers offered discounts, despite continued increases in input costs. Finally, business optimism weakened from September.

The RatingDog China General Composite PMI rose to 52.1 in August 2026 from July's four month low of 50.8, signalling a faster expansion in business activity, although growth remained below the 2026 average so far. Both the manufacturing and services sectors recorded stronger increases in output and new business in August, pointing to a broad-based improvement in operating conditions. Employment also rose for a fourth consecutive month, extending the longest stretch of job creation in more than 5-1/2 years. Meanwhile, input cost inflation accelerated but remained modest, while prices charged for goods and services increased at the slowest pace since January, suggesting limited pressure on final prices despite higher input costs.

The RatingDog China General Composite PMI fell to 50.8 in July 2026 from 53.6 in the previous month, marking its lowest reading since July 2025 and signaling a slower pace of expansion in private-sector activity. The decline reflected weaker momentum across both the manufacturing and services sectors. New business increased for a fourteenth consecutive month but expanded at the slowest pace since March, indicating softer demand. Meanwhile, employment rose for a third straight month, extending the longest run of job growth since mid-2023 and suggesting firms continued to add staff despite moderating activity. On the price front, both input costs and output charges rose at their weakest pace in six months, with inflation easing across the manufacturing and services sectors. The moderation in cost and selling price pressures points to softer inflationary momentum as overall business growth lost steam in July.