Economic contraction in China continues in February

By Gokhan Ergocun

ISTANBUL (AA) - Economic activity in China's manufacturing and non-manufacturing sectors continued its contraction trend in February, which began in the first month of 2026.

According to data from the National Bureau of Statistics (NBS) on Thursday, the Purchasing Managers' Index (PMI) for the manufacturing industry fell to 49 in February, down 0.3 points from the previous month.

The new orders sub-index, which indicates demand intensity in the manufacturing sector, decreased by 0.6 points to 48.6 in February, while the production sub-index decreased by one point to 49.6.

The manufacturing PMI entered expansion territory for the first time in eight months in December 2025 at 50.1, but fell by 0.8 points to 49.3 in January 2026.

- Non-manufacturing PMI

The non-manufacturing PMI index, which covers sectors such as services, construction, mining, and agriculture, rose by 0.1 points to 49.5 in February but continued to contract.

The non-manufacturing PMI ended the year in expansion in December 2025 at 50.2, but declined by 0.8 points to 49.4 in January 2026.

In PMI indexes compiled from data provided by purchasing managers of companies operating in manufacturing and non-manufacturing sectors.

Values above 50 indicate an increase in economic activity, while values below 50 indicate a negative result.