China Services PMI Hits 3-Month Low

China’s official NBS Non-Manufacturing PMI edged up to 49.5 in February 2026 from 49.4 in the previous month but remained below market expectations of 49.8. The latest reading marked the lowest level since November and signaled a second straight month of contraction in services activity, partly affected by disruptions from the week-long Lunar New Year holiday. New orders fell at a faster pace (45.2 vs 46.1 in January), while foreign demand weakened further (44.7 vs 46.9), underscoring soft external conditions. Employment stayed subdued (46.0 vs 46.1), pointing to ongoing labor market slack. Supplier delivery times shortened (50.5 vs 51.1), indicating improved supply conditions. On the pricing front, input costs rose at a quicker pace (50.9 vs 50.0), while output prices remained in contraction (48.8 vs 48.8). Looking ahead, business confidence eased for the second consecutive month (55.0 vs 56.0), suggesting a more cautious outlook.

China’s official NBS Non-Manufacturing PMI slipped to 49.4 in January 2024 from 50.2 in the previous month, missing market expectations of 50.3 and marking the lowest reading since December 2022. The deterioration reflected weak post-holiday demand, cautious consumer spending, and persistent stress in the property sector. Both new orders (46.1 vs. 47.3 in December) and foreign demand contracted at a steeper pace (46.9 vs. 47.5). At the same time, employment remained subdued (46.1 vs 46.1), pointing to continued labor market slack. Supplier delivery times shortened slightly (51.1 vs. 51.3), suggesting easing supply conditions. On the pricing front, input cost pressures stabilized (50.0 vs. 50.2), while output prices declined at a slower pace (48.8 vs. 48.0). Looking ahead, business sentiment softened to a four-month low (56.0 vs. 56.5).

China’s official NBS Non-Manufacturing PMI rose to 50.2 in December 2025 from 49.5 in the prior month, marking the highest level since August and beating market forecasts of 49.8. The improvement highlighted Beijing’s ongoing efforts to shore up domestic demand through increased fiscal spending, consumption incentives, and supportive policy measures, which helped underpin activity in services toward year-end. Both new orders (47.3 vs. 45.7 in November) and employment (46.1 vs. 45.3) fell at a slower pace, while foreign demand stayed weak (47.5 vs. 47.9). Supplier delivery times were broadly unchanged (51.3 vs. 51.2), indicating stable supply chains and limited logistical strain. On the pricing side, input costs continued to rise despite a marginal softening (50.2 vs. 50.4), while selling prices fell more sharply (48.0 vs. 49.1). Finally, sentiment improved to a nine-month high (56.5 vs. 56.2), boosted by hopes of further policy easing and a gradual recovery in domestic demand.