Chinese industry remains at risk
A survey of 27 leading analysts showed that the official manufacturing PMI for February 2026 was 49.1, up from 49.3 in January, notes Reuters.
A PMI reading below 50 for the second month in a row means a watershed between economic growth and contraction, the publication said.
At the same time, steady exports will to some extent compensate for this negative dynamics. But economists warn that without additional support measures, economic growth in the first quarter will remain weak and uncertain.
“As long as the PMI is consistently below 50, it means the manufacturing sector is shrinking, and standard stimulus tools such as cutting interest rates or required reserves may not have much effect,” Reuters quoted Xu Tiancheng as saying (Xu Tianchen), a senior economist at the Economist Intelligence Unit.
The data is particularly relevant ahead of the announcement of official economic growth targets for 2026. That will come as early as this week, when Premier Li Qiang delivers the government’s report card. Investors and international markets are closely watching what steps will be taken to stabilize production and stimulate domestic demand.
