China’s Weak 2026 Start Bolsters Case for Early Policy Easing

China’s economy stumbled into the new year, bolstering the case for Beijing to ramp up policy support in coming weeks as strong exports failed to offset weak domestic demand.

Official purchasing managers’ indexes released over the weekend suggested an unexpected and broad slowdown in January, with activity in the non-manufacturing sector contracting at the worst pace since late 2022.

While a private gauge published Monday showed a more encouraging sign for export-oriented manufacturing firms last month, the data reflects a lopsided economy at risk of losing steam due to weak domestic demand.

“The message from the business survey calls for ...