A cargo ship is docked at a berth loading and unloading containers at the Lianyungang Port Container Terminal in China’s Jiangsu Province on March 1, 2026.
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China’s factory activity slowed in February as manufacturers paused production and freight to celebrate an extended holiday, an official survey showed on Wednesday.
The official manufacturing purchasing managers’ index fell to 49 in February, according to the National Bureau of Statistics, missing economists’ forecast for 49.1. A reading below 50 indicates contraction, while levels above that threshold signal expansion.
This marks the second straight month of contraction, with PMI readings matching October and April 2025 levels. The official PMI came in at 49.3 in January after a brief rebound in December.
The composite PMI, a broad measure that tracks activity across manufacturing and services, fell to 49.5 in January from 49.8, official data showed.
The non-manufacturing PMI, which includes services and construction, edged up 0.1 percentage point to 49.5.
The 9-day Lunar New Year holiday saw a surge in travel, leisure activities and duty-free shopping, according to preliminary official figures. This year’s holiday is from Feb. 15 to Feb. It lasted until 23, the longest on record as Chinese authorities tried to boost consumer spending.
The world’s second-largest economy has struggled to shake off deflationary pressures since the end of the pandemic, weighed down by a prolonged asset slump and weak job market prospects.
Beijing is set to announce a series of economic targets at its parliamentary session on Thursday. Economists largely expected policymakers to lower their growth target this year to 4.5% to 5% from “around 5%” over the past three years.
(tags to translate)Asia Economy
