China’s NBS Manufacturing PMI fell to 49.3 in January 2026 (-0.8 pts MoM), slipping back into contraction alongside weaker demand conditions.

• The Production Index eased to 50.6 (-1.1 pts MoM) but remained above 50, showing output continued to expand despite slowing momentum.

• The New Orders Index fell to 49.2 (-1.6 pts MoM), signaling softer manufacturing demand conditions entering the new year.

• The Raw Material Inventory Index declined to 47.4 (-0.4 pts MoM), pointing to continued inventory drawdowns among manufacturers.

• The Employment Index slipped to 48.1 (-0.1 pts MoM), indicating a slight further weakening in manufacturing labor conditions.

• The Supplier Delivery Time Index edged down to 50.1 (-0.1 pts MoM) but stayed above 50, suggesting deliveries continued to accelerate marginally.

• By firm size, large enterprises remained in expansion at 50.3 (-0.5 pts MoM), while medium firms fell to 48.7 (-1.1 pts MoM) and small firms to 47.4 (-1.2 pts MoM), reflecting broader contraction outside large producers.

China’s NBS Non-manufacturing PMI slipped to 49.4 in January 2026 (-0.8 pts MoM), reflecting softer service and construction activity.

• Construction activity declined sharply to 48.8 (-4.0 pts MoM), while services eased to 49.5 (-0.2 pts MoM), showing broader weakness across non-manufacturing segments.

• The New Orders Index dropped to 46.1 (-1.2 pts MoM), indicating weaker demand conditions, led by construction orders at 40.1 (-7.3 pts MoM) and softer services orders at 47.1 (-0.2 pts MoM).

• The Input Price Index edged down to 50.0 (-0.2 pts MoM), holding at the neutral level as construction input costs rose to 52.0 (+1.2 pts) while services inputs eased to 49.7 (-0.4 pts).

• The Sales Price Index increased to 48.8 (+0.8 pts MoM), signaling a narrowing decline in selling prices across both construction (48.2) and services (48.9).

• The Employment Index held steady at 46.1 (flat MoM), with construction employment at 41.1 (+0.1 pts) and services employment unchanged at 47.0.

• The Business Activity Expectations Index eased to 56.0 (-0.5 pts MoM) but remained elevated, with construction expectations falling to 49.8 (-7.6 pts) and services expectations rising to 57.1 (+0.7 pts).

The NBS Composite PMI reversed the November gain, dropping -0.9 pts to 49.8 in December, the second lowest reading since December 2022.