WS News
31 Aug 2026, 05:17
China’s Manufacturing PMI Improves in August, but Broader Economy Remains in Contraction
China’s manufacturing activity improved more than expected in August, but the latest PMI data showed that the broader economy remained below the key 50-point threshold separating expansion from contraction.
The official Manufacturing PMI rose to 49.8 from 49.2 in July, beating market expectations of 49.5. The improvement brought the factory sector close to stabilization, although the sub-50 reading indicates manufacturing activity continued to contract.
The picture was weaker in services and other non-manufacturing industries. China’s Non-Manufacturing PMI remained at 49.0, below the 49.5 forecast and unchanged from the previous month.
Meanwhile, the Composite PMI edged up to 49.5 from 49.3. Despite the improvement, it also remained in contraction territory.
Overall, the August figures suggest that conditions in Chinese manufacturing are improving, but weakness in the services side of the economy continues to constrain the recovery. The mixed data could maintain pressure on Chinese policymakers to provide additional support for domestic demand and economic activity.
China’s manufacturing activity improved more than expected in August, but the latest PMI data showed that the broader economy remained below the key 50-point threshold separating expansion from contraction.
The official Manufacturing PMI rose to 49.8 from 49.2 in July, beating market expectations of 49.5. The improvement brought the factory sector close to stabilization, although the sub-50 reading indicates manufacturing activity continued to contract.
The picture was weaker in services and other non-manufacturing industries. China’s Non-Manufacturing PMI remained at 49.0, below the 49.5 forecast and unchanged from the previous month.
Meanwhile, the Composite PMI edged up to 49.5 from 49.3. Despite the improvement, it also remained in contraction territory.
Overall, the August figures suggest that conditions in Chinese manufacturing are improving, but weakness in the services side of the economy continues to constrain the recovery. The mixed data could maintain pressure on Chinese policymakers to provide additional support for domestic demand and economic activity.
