China Factory Activity Contracts for Second Month in February
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China’s factory activity contracted for a second straight month in February, as the Spring Festival holiday disrupted production and weakened demand, according to official data released Wednesday.
The manufacturing purchasing managers’ index (PMI) fell to 49 from 49.3 in January, the National Bureau of Statistics (NBS) said. A reading below 50 signals contraction. The composite PMI output index, which covers both manufacturing and services, also slipped to 49.5, indicating a broader decline in business activity.
Supply and demand both weakened during the holiday period. The production subindex fell into the contraction territory after three months, while total new orders also declined. New export orders saw a sharper fall, with the corresponding gauge reaching its lowest level since April 2025, pointing to increased uncertainty in exports.
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- China’s manufacturing PMI fell to 49 in February 2025, indicating its second consecutive month of contraction due to the Spring Festival and weak demand.
- New export orders and production notably declined, with the new export orders index hitting its lowest since April 2025; small and midsize firms contracted sharply, while large manufacturers expanded.
- Despite ongoing price pressures, business confidence improved slightly, though both manufacturing and nonmanufacturing activity remained subdued.
- August 2022：
- The gauge for finished goods inventory in February 2026 fell to its lowest level since this month.
- April 2025：
- The gauge for new export orders in February 2026 reached its lowest level since this month.
- May 2025：
- The purchase gauge in February 2026 fell to its lowest level since this month.
- January 2026：
- China’s Manufacturing PMI was at 49.3, preceding the drop to 49 in February 2026.
- February 2026：
- China’s factory activity contracted for a second straight month, with manufacturing PMI at 49 and composite PMI output index at 49.5.
- February 2026：
- Production subindex fell into contraction after three months of expansion.
- February 2026：
- Employment subindex slipped to 48, a six-month low as of this date.
- mid-to-late February 2026：
- The Chinese Spring Festival occurred, disrupting production and weakening demand.
- March 4, 2026：
- Official PMI data for February 2026 was released by the National Bureau of Statistics.
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