AI Data Insight
In Q3 2026, China's non-manufacturing employment index fell to 45.4%, a further decline from 45.8% in Q2, indicating that labor demand remains deeply mired in the contraction zone. The overall non-manufacturing PMI also fell below the boom-bust line, reflecting that extreme weather and weak domestic demand are inflicting a double blow to the momentum of the service and construction sectors. The market highly expects official authorities to accelerate the rollout of incremental fiscal and monetary policies in the second half of the year to stabilize employment and the broader macroeconomic landscape.