China Services Activity Returns to Contraction

China’s official NBS Non-Manufacturing PMI fell to 49.4 in April 2026 from 50.1 in March, worse than the expected 49.9, signaling a renewed contraction in the services-led sector. The weakness was broad-based across subcomponents, with the business activity index declining for both construction (48.0 vs 49.3 in March) and services (49.6 vs 50.2), as sentiment weakened across most industries, although transport and telecom-related services remained relatively strong. New orders also continued to contract (44.3 vs 45.0), pointing to subdued domestic demand, while employment improved (45.5 vs 45.2) but remained in contraction, reflecting ongoing labor market softness. On prices, input costs edged down slightly (51.7 vs 52.3), while sales prices fell more sharply (48.1 vs 49.9). Meanwhile, business activity expectations strengthened to 54.7 from 54.2, suggesting firms remain cautiously optimistic about future demand despite current weakness.

China’s official NBS Non-Manufacturing PMI rose to 50.1 in March 2026 from 49.5 in the previous month, beating market expectations of 49.9. The latest reading signals a stabilization in the services sector after two consecutive months of contraction. Breaking down the components, the services activity subindex improved (50.2 vs 49.7 in February), while the construction subindex also rose (49.3 vs 48.2), though it continued to reflect stress in China’s struggling property sector. Total new orders continued to decline (45.0 vs 45.2), but the drop was partially offset by an increase in export orders (48.8 vs 44.7). Meanwhile, employment fell further (45.2 vs 46.0), highlighting ongoing labor market slack, whereas supplier delivery times lengthened (51.5 vs 50.5). On prices, input costs climbed (52.3 vs 50.9), while sales prices also went up (49.9 vs 48.8). Lastly, business activity expectations softened (54.2 vs 55.0), but enterprises remain optimistic about market development.

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.