A cargo ship stands at a berth for container loading and unloading at Lianyungang Port Container Terminal in China’s Jiangsu Province on March 1, 2026.
C Photo | Future Releases | Getty Images
China’s factory activity slowed in February as manufacturers paused production and freight to celebrate an extended holiday, an official survey showed on Wednesday.
Accordingly, the official Manufacturing Purchasing Managers’ Index fell to 49 in February National Bureau of StatisticsMissing Economists’ Estimates 49.1. A reading below 50 indicates contraction, while levels above that threshold signal expansion.
That’s the second consecutive month of contraction. The official PMI fell to 49.3 in January after a brief rebound in December.
The composite PMI, a broad measure that tracks activity in manufacturing and services, fell to 49.5 from 49.8 in January, official data showed.
The non-manufacturing PMI, which covers services and construction, edged up 0.1 percentage point to 49.5.
9 days Lunar New Year holiday Saw a pickup In travel, leisure activities and duty-free shopping, according to preliminary official figures. This year’s holiday, which ran from February 15 to February 23, was the longest on record as Chinese authorities sought to boost consumer spending.
The world’s second-largest economy has struggled to ease inflationary 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 its economic targets Parliamentary meeting Thursday. Economists widely expect policymakers to cut the growth target for this year to 4.5% to 5%, down from a target of “around 5%” for the past three years.
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