China NBS General PMI Lowest Since Late 2022

China’s NBS Composite PMI Output Index fell to 49.3 in July 2026, down from 50.6 the previous month, marking the lowest reading since December 2022. The latest result also marked the first contraction in overall business activity since February, as manufacturing output shrank for the first time in five months amid weak demand and elevated production costs. Meanwhile, the services sector returned to contraction after posting modest growth over the previous two months, reinforcing expectations that Beijing will continue to rely on incremental policy support to bolster the economy. NBS statistician Huo Lihui noted that some manufacturing industries had entered the traditional off-season but said business expectations remained generally optimistic, while activity in the cultural and tourism sectors continued to recover.

China’s NBS Composite PMI Output Index inched up to 50.6 in June 2026 from 50.5 in the previous month, marking the highest reading since December and a fourth consecutive month of expansion in overall business activity. Manufacturing activity returned to growth, supported by resilient high-tech exports tied to the global AI boom, although broader export demand remained soft amid lingering trade uncertainty and weak domestic consumption. Meanwhile, the services sector unexpectedly expanded, likely helped by stronger business activity after reports that China's central bank urged some commercial banks to step up lending to support the economy. NBS statistician Huo Lihui said market expectations improved further in June, reflecting stronger business confidence and a gradual recovery in sentiment despite persistent economic headwinds.

China’s NBS Composite PMI Output Index increased to 50.5 in May 2026 from 50.1 in April, marking a third straight month of growth in overall business activity. The uptick reflected a modest rebound in services after April’s contraction, while manufacturing stayed largely flat. Still, the outlook was clouded by external headwinds. The Middle East conflict, which shut the Strait of Hormuz in late February, has driven energy prices sharply higher, lifting production and transport costs and squeezing margins. Trade uncertainty also lingered after a mid-May summit in Beijing between Chinese and U.S. leaders failed to extend last year’s truce. While both sides agreed to explore tariff cuts on about USD 30 billion of goods each, the absence of a broader deal weighed on confidence and export prospects. Huo Lihui of the National Bureau of Statistics said China's overall economic activity continued to expand in May despite rising costs and challenging global conditions.