On March 31, 2026, the Service Industry Survey Center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing released China’s PMI. In response, Huo Lihui, Chief Statistician of the Service Industry Survey Center of the National Bureau of Statistics, provided an interpretation. In March, the manufacturing PMI, the non-manufacturing business activity index, and the composite PMI output index all returned to expansion territory, registering 50.4%, 50.1%, and 50.5%, respectively, up 1.4, 0.6, and 1 percentage points MoM, indicating a rebound in the level of economic prosperity in China. China PMI Performance in March 2026 I. Performance of China’s Manufacturing PMI In March, the manufacturing PMI stood at 50.4%, up 1.4 percentage points MoM and above the threshold, indicating a rebound in the prosperity level of the manufacturing sector. By enterprise size, the PMI of large enterprises was 51.6%, up 0.1 percentage points MoM and above the threshold; the PMI of medium-sized and small enterprises was 49.0% and 49.3%, respectively, up 1.5 and 4.5 percentage points MoM, but still below the threshold. By sub-index, among the five sub-indices comprising the manufacturing PMI, the production index and the new orders index were both above the threshold, while the raw material inventory index, the employment index, and the supplier delivery time index were all below the threshold. The production index was 51.4%, up 1.8 percentage points MoM, indicating faster manufacturing production activity. The new orders index was 51.6%, up 3.0 percentage points MoM, indicating a marked improvement in the prosperity level of market demand in the manufacturing sector. The raw material inventory index was 47.7%, up 0.2 percentage points MoM, indicating that the decline in inventories of major raw materials in the manufacturing sector narrowed somewhat. The employment index was 48.6%, up 0.6 percentage points MoM, indicating a rebound in the employment climate of manufacturing enterprises. The supplier delivery time index was 49.5%, up 0.4 percentage points MoM and below the threshold, indicating that delivery times of raw material suppliers in the manufacturing sector lengthened compared with the previous month. II. Performance of China’s Non-Manufacturing PMI In March, the non-manufacturing business activity index was 50.1%, up 0.6 percentage points MoM and above the threshold, indicating some improvement in the prosperity level of the non-manufacturing sector. By industry, the business activity index of the construction sector was 49.3%, up 1.1 percentage points MoM; the business activity index of the services sector was 50.2%, up 0.5 percentage points MoM. From the perspective of the services sector, the business activity index for industries such as railway transportation, telecommunications, radio, television and satellite transmission services, monetary and financial services, and insurance all remained in the relatively high expansion territory above 55.0%; the business activity index for industries such as retail, accommodation, catering, and real estate all stayed below the critical point. The new orders index was 45.0%, down 0.2 percentage points from the previous month, indicating that market demand in the non-manufacturing sector pulled back somewhat. By industry, the new orders index for construction was 43.5%, up 1.3 percentage points from the previous month; the new orders index for services was 45.3%, down 0.4 percentage points from the previous month. The input price index was 52.3%, up 1.4 percentage points from the previous month, indicating that the overall price level of inputs used in the operating activities of non-manufacturing enterprises continued to rise. By industry, the input price index for construction was 52.7%, up 3.6 percentage points from the previous month; the input price index for services was 52.2%, up 1.0 percentage points from the previous month. The selling price index was 49.9%, up 1.1 percentage points from the previous month, but still below the critical point, indicating that the decline in the overall selling price level in the non-manufacturing sector narrowed. By industry, the selling price index for construction was 49.3%, up 1.7 percentage points from the previous month; the selling price index for services was 50.0%, up 1.0 percentage points from the previous month. The employment index was 45.2%, down 0.8 percentage points from the previous month, indicating that employment conditions among non-manufacturing enterprises pulled back. By industry, the employment index for construction was 39.1%, down 3.4 percentage points from the previous month; the employment index for services was 46.2%, down 0.4 percentage points from the previous month. The business activity expectations index was 54.2%, down 0.8 percentage points from the previous month, but still above the critical point, indicating that non-manufacturing enterprises remained optimistic about market development. By industry, the business activity expectations index for construction was 50.5%, down 0.4 percentage points from the previous month; the business activity expectations index for services was 54.8%, down 1.0 percentage points from the previous month. III. Performance of China’s Composite PMI Output Index In March, the composite PMI output index was 50.5%, up 1.0 percentage points from the previous month and above the critical point, indicating that the overall business activity level of production and operations among enterprises in China improved. China’s PMI Returned to Expansion Territory in March — Huo Lihui, Chief Statistician of the Service Industry Survey Center of the National Bureau of Statistics, Interprets China’s PMI for March 2026 On March 31, 2026, the Service Industry Survey Center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing released China’s PMI. In this regard, Huo Lihui, Chief Statistician of the Service Survey Center of the National Bureau of Statistics, provided an interpretation. In March, the manufacturing PMI, the non-manufacturing business activity index, and the composite PMI output index all returned to expansion territory, coming in at 50.4%, 50.1%, and 50.5%, respectively, up 1.4, 0.6, and 1.0 percentage points from the previous month, indicating a rebound in the overall economic prosperity level in China. I. The Manufacturing PMI Rose to Expansion Territory In March, as enterprises accelerated the resumption of work and production after the Chinese New Year and market activity increased, the manufacturing PMI came in at 50.4%, returning to expansion territory. (I) Production and demand expanded simultaneously. The production index and the new orders index stood at 51.4% and 51.6%, respectively, up 1.8 and 3.0 percentage points from the previous month, and both rose into expansion territory. Manufacturing enterprises stepped up production activities, and market demand improved markedly. By industry, the production index and new orders index for such industries as agricultural and sideline food processing, non-ferrous metal smelting and rolling processing were both above 55.0%, and production and demand in related enterprises were released relatively quickly; the two indices for such industries as textile and apparel, chemical fibers, and rubber and plastic products remained below the critical point, with relatively weak market activity. Driven by the recovery in production and demand, enterprises’ purchase willingness strengthened, and the purchasing volume index was 50.9%, up 2.7 percentage points from the previous month. (II) The PMI of large, medium-sized, and small enterprises all rebounded. The PMI of large enterprises was 51.6%, up 0.1 percentage points from the previous month, with the prosperity level rising steadily; the PMI of medium-sized and small enterprises was 49.0% and 49.3%, respectively, up 1.5 and 4.5 percentage points from the previous month, with the prosperity level improving significantly. (III) The three key industries expanded relatively quickly. The PMI of high-tech manufacturing was 52.1%, up 0.6 percentage points from the previous month, and remained above the critical point for 14 consecutive months, indicating continued positive development momentum in the industry; the PMI of equipment manufacturing and the consumer goods industry was 51.5% and 50.8%, respectively, up 1.7 and 2.0 percentage points from the previous month, and both rose to expansion territory; the PMI of high energy-consuming industries was 48.9%, up 1.1 percentage points from the previous month, with the prosperity level showing some rebound. (IV) Price indices rebounded significantly. Affected by factors such as the continued rise in prices of some bulk commodities in the recent period and the acceleration of enterprise procurement activities, the purchase price index of major raw materials and the ex-factory price index stood at 63.9% and 55.4%, respectively, up 9.1 and 4.8 percentage points from the previous month, and the overall price level in the manufacturing market rebounded markedly. By industry, the two price indices for such industries as petroleum, coal and other fuel processing, and chemical raw materials and chemical products were both above 70.0%, and the overall level of purchase and sales prices in related industries rose significantly. (5) Market expectations remained stable with a slight increase. The index of expectations for production and business activities was 53.4%, up 0.2 percentage points MoM, indicating that manufacturing enterprises became somewhat more confident about near-term market developments. By industry, the index of expectations for production and business activities in sectors such as special-purpose equipment, automobiles, railway, shipbuilding, aerospace equipment, and other industries remained in a relatively high expansion range above 56.0%, and the related enterprises were more optimistic about future industry development. The survey results also showed that, affected by factors such as the current geopolitical conflicts in the Middle East, prices of related raw materials such as petroleum and chemicals rose sharply. Coupled with higher logistics freight rates, the proportion of enterprises reporting high raw material costs and high logistics costs both increased MoM this month. II. The Non-Manufacturing Business Activity Index Rebounded In March, the non-manufacturing business activity index was 50.1%, up 0.6 percentage points MoM, indicating an improvement in the prosperity level of the non-manufacturing sector. (1) The service sector business activity index rose above the threshold. The service sector business activity index was 50.2%, up 0.5 percentage points MoM. By industry, the business activity indexes for railway transportation, telecommunications, broadcasting, television and satellite transmission services, monetary and financial services, and insurance all remained in a relatively high expansion range above 55.0%, with total business volume growing relatively fast; after Chinese New Year, the business activity indexes for retail, accommodation, catering, and other industries related to residents' travel and consumption fell below the threshold, and market activity weakened somewhat. In terms of market expectations, the service sector business activity expectations index was 54.8%, continuing to remain at a relatively high level, indicating that service sector enterprises remained optimistic about near-term market developments. (2) The construction sector business activity index improved. As construction projects across various regions gradually resumed work after the holiday, the construction sector business activity index was 49.3%, up 1.1 percentage points MoM. In terms of market expectations, the construction sector business activity expectations index was 50.5%, above the threshold, indicating that construction enterprises remained confident about future industry development. III. The Composite PMI Output Index Rose Above the Threshold In March, the composite PMI output index was 50.5%, up 1.0 percentage points MoM, indicating that the overall level of production and business activity across China's enterprises continued to improve. The manufacturing production index and the non-manufacturing business activity index, which together constitute the composite PMI output index, were 51.4% and 50.1%, respectively.

Strait of Hormuz disruptions and Iran tensions are driving up aluminum prices and premiums. Aluminium Bahrain and Qatalum have cut output, while feedstock is tight. Rerouting via Port of Sohar or Saudi ports raises costs and delays. Buyers are turning to China, India, Russia, Canada, and scrap to offset risk. Prolonged disruption could reduce Middle East market share and reprice it as higher-risk supply.

Based on China’s 2025 aluminum wire and cable export data to the Middle East, Saudi Arabia was the largest export destination in the region, with annual exports of 9,426.752 mt, accounting for 31.88 of the Middle East total

【SMM Steel】The Middle East conflict is disrupting shipping routes, causing longer delivery times and higher costs for EU steel imports. Buyers expect cargoes to reroute via the Cape of Good Hope, adding 2-4 weeks and raising freight costs. Uncertainty is limiting orders. The delays come as the EU plans tighter import quotas from July 2026. Higher energy and freight costs may push up steel prices.

NBS data showed that in February, the manufacturing PMI was 49.0%, down 0.3 percentage points from the previous month, indicating a pullback in the manufacturing sector’s prosperity level. In February, the non-manufacturing business activity index was 49.5%, up 0.1 percentage points from the previous month, indicating an improvement in the non-manufacturing sector’s prosperity level. In February, the composite PMI output index was 49.5%, down 0.3 percentage points from the previous month, indicating that overall production and business activities of enterprises in China slowed down from the previous month. Huo Lihui, Chief Statistician of the NBS Service Sector Survey Center, interpreted China’s PMI for February 2026. Performance of China’s PMI in February 2026 I. Performance of China’s Manufacturing PMI In February, the manufacturing PMI was 49.0%, down 0.3 percentage points from the previous month, indicating a pullback in the manufacturing sector’s prosperity level. By enterprise size, the PMI for large enterprises was 51.5%, up 1.2 percentage points from the previous month and above the threshold; the PMIs for medium- and small-sized enterprises were 47.5% and 44.8%, down 1.2 and 2.6 percentage points from the previous month, respectively, and below the threshold. By sub-index, among the five sub-indices that make up the manufacturing PMI, the production index, new orders index, raw material inventory index, employment index, and supplier delivery time index were all below the threshold. The production index was 49.6%, down 1.0 percentage points from the previous month, indicating that manufacturing production activities slowed down. The new orders index was 48.6%, down 0.6 percentage points from the previous month, indicating a decline in the prosperity of market demand in the manufacturing sector. The raw material inventory index was 47.5%, up 0.1 percentage points from the previous month, indicating that the decline in inventories of major raw materials in the manufacturing sector narrowed slightly. The employment index was 48.0%, down 0.1 percentage points from the previous month, indicating a slight pullback in the employment prosperity of manufacturing enterprises. The supplier delivery time index was 49.1%, down 1.0 percentage points from the previous month, indicating that delivery times of raw material suppliers in the manufacturing sector slowed compared with the previous month. II. Performance of China’s Non-Manufacturing PMI In February, the non-manufacturing business activity index was 49.5%, up 0.1 percentage points from the previous month, indicating an improvement in the non-manufacturing sector’s prosperity level. By industry, the construction business activity index was 48.2%, down 0.6 percentage points from the previous month; the services business activity index was 49.7%, up 0.2 percentage points from the previous month. From the perspective of service industries, the business activity indices for industries such as accommodation, catering, and culture/sports/entertainment were all in a high prosperity range above 60.0%; the business activity indices for industries such as capital market services and real estate were all below the threshold. The new orders index was 45.2%, down 0.9 percentage points MoM, indicating a pull back in non-manufacturing market demand. By industry, the new orders index for the construction industry was 42.2%, up 2.1 percentage points MoM; the new orders index for the services industry was 45.7%, down 1.4 percentage points MoM. The input prices index was 50.9%, up 0.9 percentage points MoM, indicating an overall increase in the price level of inputs used by non-manufacturing enterprises for business operations. By industry, the input prices index for the construction industry was 49.1%, down 2.9 percentage points MoM; the input prices index for the services industry was 51.2%, up 1.5 percentage points MoM. The selling price index was 48.8%, unchanged from the previous month and still below the threshold, indicating that the overall level of non-manufacturing selling prices was lower than in the previous month. By industry, the selling price index for the construction industry was 47.6%, down 0.6 percentage points MoM; the selling price index for the services industry was 49.0%, up 0.1 percentage points MoM. The employment index was 46.0%, down 0.1 percentage points MoM, indicating a slight pull back in the employment prosperity of non-manufacturing enterprises. By industry, the employment index for the construction industry was 42.5%, up 1.4 percentage points MoM; the employment index for the services industry was 46.6%, down 0.4 percentage points MoM. The business activity expectations index was 55.0%, down 1.0 percentage point MoM and still in a relatively high prosperity range, indicating that non-manufacturing enterprises remained confident in market development. By industry, the business activity expectations index for the construction industry was 50.9%, up 1.1 percentage points MoM; the business activity expectations index for the services industry was 55.8%, down 1.3 percentage points MoM. III. Performance of China’s Composite PMI Output Index In February, the composite PMI output index was 49.5%, down 0.3 percentage points MoM, indicating that overall production and business activities of enterprises in China slowed down compared with the previous month. In February, the manufacturing PMI pulled back, while the non-manufacturing business activity index rebounded slightly. —Huo Lihui, Chief Statistician of the NBS Service Survey Center, interprets China’s PMI for February 2026 On March 4, 2026, the NBS Service Survey Center and the China Federation of Logistics and Purchasing released China’s PMI. In this regard, Huo Lihui, Chief Statistician of the Service Industry Survey Center of the National Bureau of Statistics (NBS), provided an interpretation. In February, affected by factors such as the Chinese New Year holiday, the manufacturing PMI was 49.0, down 0.3 percentage points MoM; the non-manufacturing business activity index was 49.5, up 0.1 percentage points MoM; and the composite PMI output index was 49.5, down 0.3 percentage points MoM. I. The Manufacturing PMI Pulled Back In February, the manufacturing PMI was 49.0, with the prosperity level down from the previous month. Judging from historical data, the PMI in the month that includes the Chinese New Year mostly shows some fluctuations. In particular, this year’s Chinese New Year holiday was extended and fell entirely in mid-to-late February, which had some impact on enterprises’ production and operations, and overall market activity in manufacturing declined. (1) Both supply and demand slowed down. The production index and the new orders index were 49.6 and 48.6, down 1.0 and 0.6 percentage points MoM, respectively, indicating a pullback in manufacturing production and market demand. By industry, the production index and new orders index for industries such as agricultural and sideline food processing and computers, communications and electronic equipment were both above the critical point, with supply and demand prosperity remaining in expansion; in industries such as textiles, apparel and accessories and automobiles, both indices remained below the critical point, with weak market activity. (2) The PMI for large enterprises continued to expand. The PMI for large enterprises was 51.5, up 1.2 percentage points MoM, with production and operations remaining in expansion; small and medium-sized enterprises were more affected by the Chinese New Year holiday, with PMIs of 47.5 and 44.8 this month, down 1.2 and 2.6 percentage points MoM, respectively, and their prosperity levels pulled back. (3) Growth momentum in high-tech manufacturing continued to emerge. The high-tech manufacturing PMI was 51.5, remaining in expansion territory and significantly higher than the overall manufacturing level, indicating a favorable development trend in related industries; the consumer goods industry PMI was 48.8, up 0.5 percentage points MoM, with a rebound in the prosperity level; the PMIs for equipment manufacturing and high energy-consuming industries were 49.8 and 47.8, down 0.3 and 0.1 percentage points MoM, respectively, with their prosperity levels pulling back. (4) Enterprise expectations improved. The index of expectations for production and business activities was 53.2, up 0.6 percentage points MoM, indicating that manufacturing enterprises’ confidence in market development after the Chinese New Year strengthened. By industry, the index of expectations for production and business activities in industries such as general equipment and railway, ship, aerospace and aviation equipment was above 56.0, in a relatively high prosperity range, and related enterprises were more optimistic about near-term industry development. II. Non-Manufacturing Business Activity Index Edged Up Slightly In February, the non-manufacturing business activity index stood at 49.5%, up 0.1 percentage point from the previous month, indicating some improvement in the overall prosperity level of the non-manufacturing sector. (I) The service sector’s prosperity level rebounded. The service sector business activity index was 49.7%, up 0.2 percentage point from the previous month. By industry, driven by the Chinese New Year holiday effect, business volumes grew relatively quickly in industries related to residents’ travel and consumption; among them, the business activity indices for accommodation, catering, and culture, sports and entertainment all remained in the high-prosperity range above 60.0%, while those for retail and air transport rose to above 52.0%. Meanwhile, the business activity indices for capital market services and real estate remained at low levels, with subdued market activity. From the perspective of market expectations, the service sector business activity expectations index was 55.8%, remaining in a relatively high-prosperity range, indicating that service sector enterprises remained optimistic about near-term market developments. (II) The construction sector’s prosperity level declined. Affected by factors such as employees of enterprises returning to their hometowns in large numbers during the Chinese New Year holiday and the suspension of construction at some projects, the construction sector business activity index fell to 48.2%, down 0.6 percentage point from the previous month, and the construction sector’s prosperity level continued to pull back. From the perspective of market expectations, the construction sector business activity expectations index was 50.9%, up 1.1 percentage points from the previous month, returning above the threshold, indicating that construction sector enterprises’ confidence in future industry development had somewhat recovered. III. Composite PMI Output Index Pulled Back In February, the composite PMI output index was 49.5%, down 0.3 percentage point from the previous month, indicating that overall production and business activities of enterprises in China slowed down somewhat MoM. The manufacturing production index and the non-manufacturing business activity index, which make up the composite PMI output index, were 49.6% and 49.5%, respectively.

The National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) released China's purchasing managers' index (PMI) for January 2026 today (31st). The data showed that in January, China's manufacturing market demand tightened somewhat, but enterprise production maintained an expansionary trend, with the industrial structure continuing to optimize. The service sector operated relatively stably, with business expectations continuously improving. The manufacturing PMI for January 2026 was 49.3%, a decrease of 0.8 percentage points from the previous month. The PMI for equipment manufacturing in January was 50.1%, and for high-tech manufacturing, it was 52%. Both equipment and high-tech manufacturing sectors are developing steadily and positively, with the manufacturing industrial structure continuously optimizing. Operation of China's Purchasing Managers' Index in January 2026 I. Operation of China's Manufacturing PMI In January, the manufacturing PMI was 49.3%, a decline of 0.8 percentage points from the previous month, indicating a pullback in the level of manufacturing activity. By enterprise size, the PMI for large enterprises was 50.3%, down 0.5 percentage points from the previous month, yet still above the critical point; the PMIs for medium and small enterprises were 48.7% and 47.4% respectively, dropping by 1.1 and 1.2 percentage points from the previous month, both below the critical point. Looking at the sub-indices, among the five sub-indices constituting the manufacturing PMI, the production index and supplier delivery time index were both above the critical point, while the new orders index, raw material inventory index, and employment index were all below the critical point. The production index stood at 50.6%, a drop of 1.1 percentage points from the previous month, yet still above the critical point, indicating that manufacturing production activities remained in an expansionary state. The new orders index was 49.2%, a decrease of 1.6 percentage points from the previous month, suggesting a slowdown in manufacturing market demand. The raw material inventory index was 47.4%, down 0.4 percentage points from the previous month, indicating a continued reduction in the stock of major raw materials in the manufacturing sector. The employment index was 48.1%, a decline of 0.1 percentage points from the previous month, showing a slight pullback in the employment climate for manufacturing enterprises. The supplier delivery time index was 50.1%, a decrease of 0.1 percentage points from the previous month, yet still above the critical point, indicating a continuous acceleration in the delivery times of raw material suppliers in the manufacturing sector. II. Operation of China's Non-Manufacturing PMI In January, the non-manufacturing business activity index was 49.4%, a drop of 0.8 percentage points from the previous month. By industry, the construction sector's business activity index was 48.8%, a decrease of 4 percentage points from the previous month; the service sector's business activity index was 49.5%, a decline of 0.2 percentage points from the previous month. Looking at the service sector, the business activity indices for monetary and financial services, capital market services, insurance, and other industries were all above 65.0%; while the business activity indices for wholesale, accommodation, real estate, and other industries were all below the threshold. The new orders index stood at 46.1%, down 1.2 percentage points MoM, indicating a decline in market demand prosperity in the non-manufacturing sector. By sector, the new orders index for construction was 40.1%, down 7.3 percentage points MoM; the new orders index for services was 47.1%, down 0.2 percentage points MoM. The input prices index was 50.0%, down 0.2 percentage points MoM, at the threshold, indicating that input prices for non-manufacturing enterprises' operational activities were generally flat compared to the previous month. By sector, the input prices index for construction was 52.0%, up 1.2 percentage points MoM; the input prices index for services was 49.7%, down 0.4 percentage points MoM. The selling price index was 48.8%, up 0.8 percentage points MoM, indicating that the overall decline in selling prices in the non-manufacturing sector narrowed. By sector, the selling price index for construction was 48.2%, up 0.8 percentage points MoM; the selling price index for services was 48.9%, up 0.8 percentage points MoM. The employment index was 46.1%, unchanged from the previous month, indicating that the employment prosperity of non-manufacturing enterprises was basically stable. By sector, the employment index for construction was 41.1%, up 0.1 percentage points MoM; the employment index for services was 47.0%, unchanged from the previous month. The business activity expectations index was 56.0%, down 0.5 percentage points MoM, still remaining in a high prosperity range, indicating that most non-manufacturing enterprises maintain optimistic market expectations. By sector, the business activity expectations index for construction was 49.8%, down 7.6 percentage points MoM; the business activity expectations index for services was 57.1%, up 0.7 percentage points MoM. III. Operation of China's Composite PMI Output Index In January, the composite PMI output index was 49.8%, down 0.9 percentage points MoM, indicating that the overall production and operating activities of Chinese enterprises slowed down compared to the previous month. China's Purchasing Managers' Index Pulled Back in January —Huoli Hui, Chief Statistician of the NBS Service Industry Survey Center, Interprets China's Purchasing Managers' Index for January 2026 On January 31, 2026, the NBS Service Industry Survey Center and the China Federation of Logistics & Purchasing released China's Purchasing Managers' Index. In this regard, Huo Lihui, Chief Statistician of the Service Industry Survey Center of the National Bureau of Statistics (NBS), provided an interpretation. In January, the manufacturing PMI, non-manufacturing business activity index, and composite PMI output index registered 49.3%, 49.4%, and 49.8%, respectively, down 0.8, 0.8, and 0.9 percentage points MoM, indicating a pullback in economic prosperity. I. Manufacturing PMI Declined Slightly, While Production Continued to Expand In January, as some manufacturing industries entered the traditional off-season and effective market demand remained insufficient, the manufacturing PMI stood at 49.3%, reflecting a decline in prosperity compared to the previous month. (1) Enterprise production continued to expand. The production index was 50.6%, above the threshold, indicating sustained expansion in manufacturing production; the new orders index was 49.2%, reflecting a pullback in market demand. By sector, the production and new orders indices for agricultural and non-staple food processing, railway, ship, aerospace equipment, and other industries all exceeded 56.0%, indicating rapid release of production and demand; for petroleum, coal, and other fuel processing, automotive, and other industries, both indices were below the threshold, suggesting slowed market demand and a pullback in production in related sectors. (2) Both price indices rebounded. Influenced by factors such as recent price increases in some bulk commodities, the major raw material purchase price index and ex-factory price index registered 56.1% and 50.6%, respectively, up 3.0 and 1.7 percentage points MoM. Notably, the ex-factory price index rose above the threshold for the first time in nearly 20 months, indicating an overall improvement in the price level of the manufacturing market. By sector, the major raw material purchase price index and ex-factory price index for non-ferrous metal smelting and rolling processing, electrical machinery and equipment, and other industries both rose above 55.0%, reflecting overall price increases for raw material procurement and product sales in related sectors; for timber processing and furniture, petroleum, coal, and other fuel processing, and other industries, both price indices remained below the threshold. (3) The PMI for large enterprises continued to exceed the threshold. The PMI for large enterprises was 50.3%, remaining in expansion territory, with their supportive role continuing to be evident; the PMI for medium and small enterprises were 48.7% and 47.4%, respectively, down 1.1 and 1.2 percentage points MoM, indicating a pullback in their prosperity levels. (4) High-tech manufacturing continued to lead. The PMI for high-tech manufacturing was 52.0%, staying at or above the relatively high level of 52.0% for two consecutive months, indicating sustained positive development trends in related industries. The PMI for equipment manufacturing was 50.1%, remaining in expansion territory. The PMI for consumer goods and high-energy-consumption industries were 48.3% and 47.9%, respectively, reflecting a pullback in their prosperity levels. (V) Enterprise Expectations Remain Optimistic. The business activity expectations index stands at 52.6%, continuing to be above the critical point. By industry, the business activity expectations index for agricultural and sideline food processing, food and beverage refining, and tea industries has remained above 56.0% for two consecutive months, indicating strong confidence among related enterprises in the recent development of their respective industries. II. Non-Manufacturing Business Activity Index Pulls Back Slightly, Financial Market Activity Remains High In January, influenced by factors such as a decline in the prosperity of the construction industry, the non-manufacturing business activity index was 49.4%, down 0.8 percentage points from the previous month, indicating a pullback in the overall prosperity level of the non-manufacturing sector. (I) Service Sector Prosperity Drops Back Slightly. The service sector business activity index was 49.5%, down 0.2 percentage points from the previous month. By industry, the business activity indices for monetary financial services, capital market services, and insurance were all above 65.0%, showing high market activity; the real estate industry's business activity index fell below 40.0%, with a generally weak prosperity level. In terms of market expectations, the service sector business activity expectations index was 57.1%, up 0.7 percentage points from the previous month, indicating that service enterprises' confidence in the near-term market development has strengthened somewhat. (II) Construction Industry Prosperity Declines. Affected by recent low temperatures and the approaching Chinese New Year holiday, construction production and operations slowed down, with the business activity index at 48.8%, down 4.0 percentage points from the previous month, marking a significant pullback in the construction industry's prosperity level. In terms of market expectations, the construction industry business activity expectations index was 49.8%, dropping below the critical point, suggesting that construction enterprises are cautious about the industry's development prospects. III. Composite PMI Output Index Slightly Below Critical Point In January, the composite PMI output index was 49.8%, down 0.9 percentage points from the previous month, indicating that overall enterprise business activities slowed down compared to the previous month. The manufacturing production index and non-manufacturing business activity index, which make up the composite PMI output index, were 50.6% and 49.4%, respectively.