China Manufacturing Sector Continues Contraction in August

The National Bureau of Statistics reported that China's manufacturing sector continued to contract in August, although the rate of decline slowed compared to the previous month. The manufacturing Purchasing Managers Index (PMI) rose to 49.8 from 49.2 in July, remaining below the 50-point threshold that separates economic expansion from contraction.

Non-manufacturing activity remained stagnant with a PMI of 49.0, and the service sector sub-index held flat at 49.3. While postal, telecommunications, and information technology services grew with indices above 55, the construction sector saw a drop in its business activity index to 46.9.

Chief statistician Huo Lihui attributed the construction slowdown in specific regions to extreme weather, citing the impact of heavy rains and typhoons. The overall composite PMI for the month rose slightly to 49.5 from 49.3 in July.