According to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing, China's construction business activity index rose to 49,0% in June 2026, up 0,2 percentage points from May. The reading remains below the 50% threshold that separates expansion from contraction, but the release marks a second consecutive monthly improvement in the sector's sentiment gauge.
Within the construction sector, the new orders index climbed to 46,3%, up 2,8 points month on month, which the NBS described as a clear improvement in demand conditions. The employment index for construction firms rose to 42,3%, up 0,9 points, while the sector's business activity expectations index eased slightly to 51,1%, down 0,4 points but still above the expansion line. On costs, the input price index for construction fell to 50,4%, down 3,3 points, while the sales price index rose to 49,8%, up 1,2 points.
A sharper move came in the civil engineering construction sub-index, a lead indicator closely tied to infrastructure spending. Per data cited alongside the NBS release, this sub-index rose above 55% in June, up more than 3 percentage points from the prior month. Analysts linked the jump to accelerated issuance of local government special-purpose bonds, which are earmarked mainly for infrastructure projects.
New special-purpose bond issuance reached 570 billion yuan in June, according to the same data, well above the 100 to 200 billion yuan range recorded in each of the two preceding months and the highest monthly total for the first half of 2026.