Arabic version: انكماش نشاط المصانع في الصين للشهر الثاني

According to Cnbc, China’s official manufacturing purchasing managers’ index rose to 49.8 in August from 49.2 in July, but remained below the 50-point threshold that separates expansion from contraction. The result marked a second consecutive monthly decline in factory activity, although it was stronger than the 49.6 forecast in a Reuters poll of economists.

China’s economy has faced softer domestic demand and a prolonged property downturn. Growth slowed to 4.3% in the second quarter, its weakest pace since late 2022. Consumer spending stalled, urban investment contracted faster and unemployment increased, while retail sales and industrial output both slowed in July. Growth in industrial profits also cooled to its weakest pace of the year.

August data showed improvement in some manufacturing components. Production rose to 50.4 and new orders increased to 50.6, while new export orders climbed to 50.1 from 49.6 a month earlier. High-tech equipment manufacturing outperformed the wider factory sector, with production and new-order readings for electronic machinery and equipment and computer communication devices above 53. Consumer-goods production lagged at 49.

Raw-material inventory and employment readings remained in contractionary territory. The non-manufacturing gauge, covering construction and services, was unchanged at 49%, while the construction sub-index slipped 0.1 percentage point to 46.9%. Economists expect conditions to improve later this year as adverse weather fades and local governments accelerate fiscal spending, though one economist said the effects may become more visible next month and in the fourth quarter.