China NBS General PMI Inches Higher

China’s NBS Composite PMI Output Index rose to 50.7 in September 2026 from 49.5 in the previous month, marking the highest reading since December 2025 and the first expansion in overall business activity since June. The improvement reflected faster growth in manufacturing output and a return to expansion in the service sector after two months of contraction. Strong global demand for AI hardware supported sentiment, while expectations of further policy support from Beijing and a recovery from weather-related disruptions in August also boosted activity. However, persistent headwinds remained, including weak domestic demand, higher energy costs that squeezed factory margins, and uneven momentum across the broader economy. NBS statistician Huo Lihui said the September expansion was driven by brisk activity in technology-related and consumer industries.

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.