The non-manufacturing PMI in mainland China dropped to 49.4 in January

The National Bureau of Statistics announced that in January 2026, the non-manufacturing business activity index fell to 49.4, a decrease of 0.8 percentage points from the previous month. The composite PMI output index was 49.8, down 0.9 percentage points from the previous month, indicating that the production and business activities of Chinese enterprises have generally slowed compared to the previous month.

During this period, the new orders index was 46.1, a decrease of 1.2 percentage points from the previous month, indicating a decline in market demand in the non-manufacturing sector. The input prices index was 50, down 0.2 percentage points from the previous month, at the critical point, indicating that the prices of inputs used by non-manufacturing enterprises for business activities remained stable compared to the previous month. The sales prices index was 48.8, an increase of 0.8 percentage points from the previous month, indicating that the overall decline in sales prices in the non-manufacturing sector has narrowed. The employment index was 46.1, unchanged from the previous month, indicating that the employment situation in non-manufacturing enterprises is basically stable. The business activity expectation index was 56, down 0.5 percentage points from the previous month, still in a relatively high prosperity range, indicating that most non-manufacturing enterprises remain optimistic about market expectations.

Huo Lihui, chief statistician at the Service Industry Survey Center of the National Bureau of Statistics, stated that the overall prosperity level of the non-manufacturing sector has declined due to factors such as the downturn in the construction industry. By industry, the business activity index for the construction industry was 48.8, down 4 percentage points from the previous month; the business activity index for the service industry was 49.5, down 0.2 percentage points from the previous month