China’s official NBS Non-Manufacturing PMI inched up to 49.5 in February 2026 from 49.4 in January, but remained below market expectations of 49.8. Despite the slight improvement, the reading was the lowest since November and signaled a second consecutive month of contraction in services activity, partly reflecting disruptions from the week-long Lunar New Year holiday.
New orders declined at a faster rate (45.2 vs. 46.1 in January), while external demand weakened further (44.7 vs. 46.9), highlighting persistently soft global conditions. Employment remained weak (46.0 vs. 46.1), pointing to continued slack in the labor market. Supplier delivery times shortened (50.5 vs. 51.1), indicating some improvement in supply conditions.
On the pricing side, input costs accelerated (50.9 vs. 50.0), whereas output prices stayed in contraction territory (48.8 vs. 48.8). Looking ahead, business confidence declined for the second consecutive month (55.0 vs. 56.0), suggesting a more cautious outlook among firms.
