China Manufacturing Growth at Over 5-Year High

The RatingDog China General Manufacturing PMI rose to 52.1 in February 2026 from 50.3 in January, the highest since December 2020 and marking a third straight month of factory expansion. Output grew the most since June 2024, while new orders increased for a ninth month, with growth the strongest since December 2020. Foreign demand saw its sharpest rise since September 2020. Backlogs increased and employment edged up for a second month, the first back-to-back rise since mid-2021. Buying activity expanded at the fastest pace since November 2024, lifting input stocks as supplier delivery times shortened slightly. Input cost inflation rose to its highest since June 2022, partly due to higher metal prices, though still below the long-run average. Output price inflation hit a 15-month high, while confidence rose to an 11-month peak. The result differed from an official survey showing factory activity contracted for a second month in February.

The RatingDog China General Manufacturing PMI increased to 50.3 in January 2026 from December’s reading of 50.1, in line with market forecasts. The latest reading indicated a slight expansion in factory activity but the fastest growth since last October, as output growth accelerated modestly amid higher new orders, supported by a fresh rise in new export orders. In response to rising new orders and production, firms raised their staffing levels for the first time in three months, albeit only marginally. Purchasing activity increased, while supply conditions were unchanged. Regarding prices, input cost inflation accelerated to its highest level since last September due to higher metal prices. As a result, selling prices rose for the first time since November 2024. Looking ahead, business sentiment weakened to a nine-month low amid concerns over the outlook for economic growth and rising cost pressures.

The RatingDog China General Manufacturing PMI unexpectedly increased to 50.1 in December 2025 from November’s four-month low of 49.9, beating market forecasts of 49.8. The latest reading indicated a slight increase in factory activity, supported by higher inflows of new work despite a modest decline in new export sales. However, the improvement in demand was largely limited to the domestic market amid the government’s efforts to boost spending at home. Meanwhile, purchasing activity stagnated as companies reported sufficient inventories of raw materials and semi-finished products. Despite the rise in new orders, employment fell for the second consecutive month due to both resignations and redundancies amid cost concerns. On the price front, input cost inflation accelerated to a three-month high due to higher raw material prices. Selling prices continued to fall as firms attempted to support sales. Finally, business sentiment weakened amid lingering concerns over the growth outlook.