A cargo ship is parked at a berth loading and unloading containers at the Lianyungang Port Container Terminal in Jiangsu Province, China on March 1, 2026.
Cfoto | Future Publishing | Getty Images
China’s factory activity faltered in February as manufacturers paused production and cargo shipment 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.
That marks a second straight month of contraction, with PMI reading matching October and April 2025 levels. The official PMI had come in at 49.3 in January following a brief rebound in December.
The composite PMI, a broader measure that tracks activity across manufacturing and services, dropped to 49.5 from 49.8 in January, the official data showed.
The non-manufacturing PMI, which covers services and construction, edged 0.1 percentage point to 49.5.
The 9-day Lunar New Year holiday saw a pick up in travel, entertainment activities and duty-free shopping, according to preliminary official figures. This year’s holiday, that ran from Feb.15 to Feb. 23, was the longest on record as Chinese authorities sought to boost consumer spending.
The world’s second largest economy has struggled to shake off deflationary pressure since the end of the pandemic, weighed down by a prolonged property downturn and weak job market prospects.
Beijing is set to announce a series of economic targets at its parliamentary meeting Thursday. Economists largely expected the policymakers to lower the growth target for this year to a range of 4.5% to 5% down from “around 5%” targeted for the past three years.