China’s non-manufacturing sector showed a marginal improvement in June 2026, with the Non-Manufacturing Purchasing Managers’ Index (PMI) rising to 50.2, up slightly from 50.1 in May 2026. The latest reading, updated on 30 June 2026, keeps the index just above the 50-point threshold that separates expansion from contraction, suggesting that activity in services and related sectors remains in modest growth territory.
While the 0.1-point increase is incremental, it indicates that conditions in China’s broader non-manufacturing economy — which includes services, construction, and other activity outside the factory floor — are holding steady rather than slipping back. The back-to-back readings above 50 in May and June underscore a fragile but ongoing expansion as businesses continue to navigate a cautious demand backdrop.
The near-flat trajectory of the index, however, also underlines the absence of a strong acceleration in services momentum, highlighting that any recovery remains tentative. Markets and policymakers will be watching upcoming releases closely for clearer signals on whether China’s non-manufacturing sector can shift from modest stabilization toward more robust growth in the second half of 2026.