China’s NBS Composite PMI Output Index dipped to 49.8 in January 2026 from December’s six-month high of 50.7. Services activity contracted after expanding in December, weighed by post-holiday demand normalization and tighter cost conditions, while manufacturing output continued to grow. Huo Lihui, a statistician at the National Bureau of Statistics, said overall economic activity softened at the start of the year, noting that parts of the manufacturing sector entered the traditional off-season. Meanwhile, unusually low temperatures ahead of the Spring festive period also disrupted the services sector.