Chinese Factory Output Shrinks Again in February Amid Persistent Domestic Demand Weakness

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China's Factory Output Shrinks Again in February Amid Weak Domestic Demand

China’s factory output shrinks again in February as domestic demand woes persist. File Image/Reuters

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Firstpost•04-03-2026, 08:00

China's Factory Output Shrinks Again in February Amid Weak Domestic Demand

•China's manufacturing sector contracted for the second consecutive month in February.
•Official PMI fell to 49, a four-month low, indicating persistent weak domestic demand and tepid investment.
•The non-manufacturing PMI also remained under pressure at 49.5, reflecting broader economic strain.
•Analysts expect subdued growth in Q1 2026 without further policy support, as past stimulus had limited impact.
•Premier Li Qiang is set to unveil the 2026 growth target; Politburo pledged proactive policies to boost demand.

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