China's Manufacturing Contracts Again in February Amid Weak Domestic Demand

China's manufacturing sector contracted for a second consecutive month in February, with the official purchasing managers' index (PMI) falling to 49, indicating continued weakness amid sluggish domestic demand and investment. Seasonal factors like the extended Lunar New Year holiday partly influenced the data. Meanwhile, a private sector PMI showed expansion driven by stronger export orders. Policymakers have yet to introduce new stimulus, and economists anticipate subdued growth in early 2026 without further policy support, as China prepares to announce its 2026 growth target.