Chinese factory slump eases, but weak services signal uneven recovery
The PMI picked up to 49.8 from 49.2 in July, remaining below the 50-mark separating growth from contraction.
In August, China's factory activity showed signs of improvement due to increased demand, but the sector remained in contraction for the second consecutive month, according to data from the National Bureau of Statistics. The manufacturing purchasing managers' index (PMI) rose to 49.8 from 49.2 in July, still below the 50-mark that indicates growth.
This improvement was driven by rising new orders and production, which returned to expansion territory. However, the non-manufacturing PMI, which includes services and construction, remained unchanged at 49.0, marking the weakest level since December 2022. This suggests that China continues to depend on manufacturing and exports for growth, as domestic consumption and investment weakened.
Analysts highlighted the need for stronger government investment in infrastructure to boost business confidence. Despite the recent slowdown, China's leaders pledged to introduce more policies to support the economy, especially after the second quarter's growth reached a more-than-three-year low of 4.3%.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
