China’s official manufacturing PMI rose to 49.8 in August from 49.2 in July, beating forecasts of 49.4 but remaining below the 50-point threshold that separates expansion from contraction. This marks the second consecutive month in contraction territory, after June’s reading of 50.3 slipped back below the line. Weak domestic demand, an ongoing property sector downturn, and typhoon-related disruptions across southern and eastern China hampered factory activity and logistics. China’s GDP growth registered 4.3 % in the second quarter of 2026, falling short of expectations, while global demand for Chinese exports remains uneven across sectors. If the PMI stays below 50 in September, pressure on Beijing to take decisive stimulus action will intensify significantly.
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