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flag China's manufacturing and services PMIs fell below 50 in January 2026, signaling contraction due to weak demand, despite hitting its 2025 GDP target.

flag China's official manufacturing PMI fell to 49.3 in January 2026, down 0.8 points from December, signaling contraction for the first time in months due to weak domestic demand and declining new orders. flag The non-manufacturing PMI also dropped to 49.4, indicating a slowdown in services and construction, though financial services remained strong. flag The data reflects ongoing economic challenges despite China meeting its 2025 GDP growth target, prompting authorities to implement targeted fiscal measures and signal further monetary easing to boost domestic consumption and support growth.

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