Key facts
- China's official manufacturing PMI rose to 49.8 in August, up from 49.2 in July.
- The PMI remained below the 50-point threshold, indicating contraction for the second consecutive month.
- The August figure exceeded the median forecast of 49.6 from a Reuters poll.
- Services activity remained weak, signaling uneven economic recovery.
China's factory activity showed improvement in August, yet it stayed within contractionary territory for the second month in a row, as indicated by official survey data. The manufacturing purchasing managers' index (PMI) rose to 49.8 from 49.2 in July. This figure, however, remains below the 50-point mark, which is the threshold separating growth from contraction. The August reading surpassed the median forecast of 49.6 in a Reuters poll, offering a slight positive signal amidst concerns about persistently weak domestic demand impacting economic growth. Services activity remained weak, underscoring deepening imbalances in the economy.