BEIJING — Economic activity in both manufacturing and non-manufacturing sectors in China continued to contract in February 2026, extending the slowdown that began earlier in the year.
Data released by the National Bureau of Statistics of China showed that the Manufacturing Purchasing Managers’ Index (PMI) fell 0.3 points from the previous month to 49.0 in February, remaining below the key 50-point threshold that separates expansion from contraction.
Weak Demand and Production
Sub-indices within the manufacturing PMI also signaled weakening activity:
- The new orders sub-index, which reflects demand conditions, declined 0.6 points to 48.6.
- The production sub-index dropped 1 point to 49.6.
China’s manufacturing PMI had briefly returned to expansion territory in December 2025, rising to 50.1 for the first time in eight months, but slipped back into contraction in January 2026, when it fell 0.8 points to 49.3.
Non-Manufacturing Activity Still in Contraction
The Non-Manufacturing PMI, which tracks sectors such as services, construction, mining, and agriculture, rose slightly by 0.1 points to 49.5 in February, but remained below the expansion threshold.
The index had ended 2025 in expansion territory at 50.2 in December, before declining to 49.4 in January 2026.
PMI Indicator Explained
PMI readings are compiled from surveys of purchasing managers across companies operating in manufacturing and non-manufacturing industries.
- Values above 50 indicate growth in economic activity.
- Values below 50 signal contraction.
The latest figures suggest that China’s economic momentum remains under pressure in early 2026, with both industrial output and service-sector activity continuing to weaken.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök