China’s factory activity stays in contraction in August despite improvement
- Posted on August 31, 2026
- By South China Morning Post
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- 1 min read
In brief
China's manufacturing sector remains in contraction territory despite showing signs of stabilization. The Purchasing Managers' Index rose to 49.8 in August from 49.2 the previous month, indicating incremental improvement but still below the 50-point threshold that signals expansion. This modest uptick reflects ongoing challenges in the world's second-largest economy, though it suggests potential recovery momentum in coming months.
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China’s factory activity stays in contraction in August despite improvement
The PMI index was up last month to 49.8 from 49.2 in July, according to figures from the National Bureau of Statistics.
