China’s NBS Composite PMI Output Index inched up to 49.5 in August 2026, from July’s 3½-year low of 49.3. Despite the improvement, the reading signaled a second consecutive month of contraction in overall business activity, as sluggish services continued to drag on growth even as manufacturing output returned to expansion.
Soft domestic demand, prolonged weakness in the property sector, and extreme weather remained major headwinds, while trade tensions further clouded the external outlook. NBS statistician Huo Lihui noted that the August figure reflected the impact of severe weather in parts of the country but also indicated a slight recovery in overall business activity compared with July.
