China NBS General PMI Falls from 6-Month High

China’s NBS Composite PMI Output Index dipped to 49.8 in January 2026 from December's six-month high of 50.7. Services activity contracted after expanding in December, weighed by post-holiday demand normalization and tighter cost conditions, while manufacturing output continued to grow. Huo Lihui, a statistician at the National Bureau of Statistics, said overall economic activity softened at the start of the year, noting that parts of the manufacturing sector entered the traditional off-season. Meanwhile, unusually low temperatures ahead of the Spring festive period also disrupted the services sector.

China’s NBS Composite PMI Output Index edged up to 50.7 in December 2025 from 49.7 in the previous month, marking the highest reading since June. Manufacturing activity grew ahead of year-end following declines in the previous eight months. Meanwhile, the service sector expanded at its fastest pace in four months, supported by ongoing efforts from Beijing to bolster domestic demand through targeted fiscal spending, consumption support measures, and accommodative policy settings. Huo Lihui, a statistician at the National Bureau of Statistics, said China’s economic activity picked up in the final month of the year as the year-end approached, with production improving after recent weakness and the business climate in the service sector turning more favorable.

China’s NBS Composite PMI Output Index fell to 49.7 in November 2025 from 50.0 in the previous month, marking the weakest reading since December 2022 and the first contraction in private sector business in nearly three years. Manufacturing activity declined for the eighth consecutive month, pressured by weak external demand, ongoing supply-chain adjustments, intensified domestic price competition, and cautious exporters. Meanwhile, the services sector also slipped into contraction for the first time since late 2022 as consumer sentiment cooled and firms slowed expansion. Year-end demand, which usually supports retail and leisure, provided little relief, highlighting the uneven pace of recovery. Policymakers have refrained from major stimulus beyond mid-August consumer loan incentives. Huo Lihui, a statistician at the National Bureau of Statistics, noted that China’s economic activity remained stable in November as the year-end approached.