China NBS General PMI Inches Higher

China’s NBS Composite PMI Output Index edged up to 49.5 in August 2026 from July’s 3-1/2-year low of 49.3. However, the latest reading marked the second straight month of contraction in overall business activity, as weak services activity continued to weigh on growth despite a return to expansion in manufacturing output. Soft domestic demand and persistent weakness in the property sector remained key headwinds, while trade tensions added uncertainty to the external outlook. NBS statistician Huo Lihui said the August reading reflected the impact of extreme weather in some parts of the country, while noting that overall business activity recovered slightly from July.

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.