China's manufacturing activity contracted for the second consecutive month in February, according to an official survey. The official purchasing managers' index (PMI) fell to 49.0 from 49.3 in January, a 4-month low, and missed a median forecast of 49.1 in a Reuters poll. This indicates weak domestic demand and investment are offsetting resilient exports. The non-manufacturing PMI, which includes services and construction, also improved from January. Economists predict that growth will remain weak in Q1 2026 without further policy support. The Communist Party's top decision-making body, the Politburo, has pledged more proactive economic policies to stabilise employment and boost domestic demand.