30.04.202601:38:49UTC+00China Services Activity Returns to Contraction

China’s official NBS Non-Manufacturing PMI fell to 49.4 in April 2026 from 50.1 in March, undershooting market expectations of 49.9 and signaling a renewed contraction in the services-led sector. Weakness was broad-based across major subcomponents: the business activity index declined in both construction (48.0 vs. 49.3 in March) and services (49.6 vs. 50.2), as sentiment softened across most industries, with transport and telecom-related services remaining relative bright spots.

New orders continued to contract (44.3 vs. 45.0), underscoring subdued domestic demand. Employment improved marginally (45.5 vs. 45.2) but stayed in contractionary territory, highlighting persistent labor market softness. On the price front, input costs eased slightly (51.7 vs. 52.3), while output (sales) prices declined more noticeably (48.1 vs. 49.9), pointing to rising price pressures on margins.

Despite the current weakness, business activity expectations strengthened to 54.7 from 54.2, indicating that firms remain cautiously optimistic about future demand.