China: Manufacturing and non-manufacturing PMIs remain soft in February
Latest reading: China’s official NBS Manufacturing PMI declined to 49.0 in February 2026, down from 49.3 a month earlier. This reading came in just under expectations of 49.1 and was the weakest level since October. It also marked a second consecutive month of contraction in manufacturing activity, with output partly disrupted by the week-long Spring Festival holiday. Demand conditions softened further as new orders continued to fall, and export orders dropped more sharply.
The Non-Manufacturing PMI inched higher to 49.5 in February 2026 from 49.4 the month before, but still fell short of the expected 49.8. Despite the slight uptick, the index indicated a second consecutive month of contraction in the services sector. New orders declined more rapidly while external demand also deteriorated.