The manufacturing PMI in mainland China fell to 49.3 in January, below expectations

The National Bureau of Statistics announced that in January 2026, the Manufacturing Purchasing Managers' Index (PMI) fell to 49.3, below the market expectation of 50, a decrease of 0.8 percentage points from the previous month. During this period, the production index was 50.6, above the critical point, indicating that manufacturing production remains in expansion; the new orders index was 49.2, showing a decline in market demand.

Huo Lihui, chief statistician at the Service Industry Survey Center of the National Bureau of Statistics, stated that some manufacturing sectors are affected by entering the traditional off-season, coupled with insufficient effective market demand, leading to a decline in the level of prosperity compared to the previous month. Among them, the PMI for large enterprises was 50.3; the PMIs for medium and small enterprises were 48.7 and 47.4, respectively, down 1.1 and 1.2 percentage points from the previous month, indicating a decline in prosperity levels.

However, Huo Lihui pointed out that due to recent increases in the prices of some bulk commodities and other factors, the purchasing price index for major raw materials and the factory price index were 56.1 and 50.6, respectively, rising by 3 and 1.7 percentage points from the previous month. The factory price index rose above the critical point for the first time in nearly 20 months, indicating an overall improvement in the market price level of the manufacturing industry. Among them, the purchasing price index and factory price index for industries such as non-ferrous metal smelting and rolling processing and electrical machinery and equipment both rose above 55%, indicating an overall increase in the purchasing and selling prices of raw materials in related industries. In contrast, the two price indices for the wood processing and furniture, petroleum, coal, and other fuel processing industries were both below the critical point. (ta/)