China factory activity contracts for second month as manufacturing PMI falls to 49 in February, signalling continued weakness in the sector.
BEIJING: China factory activity contracts for second month in February, according to new data released by the National Bureau of Statistics.
The country’s official manufacturing purchasing managers index, or PMI, fell to 49 in February from 49.3 in January. The latest reading marks a four month low and signals continued pressure on China’s manufacturing sector.
The PMI is based on a monthly survey of factory managers across the country and is measured on a scale from 0 to 100. A reading below 50 indicates contraction, while a figure above 50 reflects expansion in factory activity.
China factory activity contracts for second month after a brief improvement late last year. In December, the manufacturing PMI rose to 50.1, ending eight consecutive months of contraction. However, the return to negative territory in early 2026 suggests that the sector is still struggling to regain momentum.
Economists say the slowdown reflects weaker external demand and cautious domestic business sentiment. Manufacturing remains a key pillar of China’s economy, making PMI readings an important indicator of broader economic health.
Despite the latest decline, analysts note that recent adjustments in United States tariffs could provide a modest boost to Chinese factories in the coming weeks. Lower tariffs may help ease pressure on exporters and improve order volumes.
Even so, China factory activity contracts for second month highlights ongoing challenges facing the manufacturing sector as policymakers monitor economic conditions and consider further measures to support growth.
