China's manufacturing sector showed tentative signs of stabilization as the official Purchasing Managers' Index (PMI) rose to 49.4 in August, marking a 0.1-point increase from July, according to data released by the National Bureau of Statistics (NBS). While remaining below the 50-point threshold separating contraction from expansion, the marginal improvement suggests gradual recovery in the world's second-largest economy.
Production Gains Momentum
The production sub-index climbed to 50.8 – its fourth consecutive month in expansion territory – up from 50.5 in July. "This shows that manufacturing production has picked up pace," said NBS senior statistician Zhao Qinghe, highlighting sustained industrial activity despite global economic headwinds.
Demand-Side Challenges Persist
New orders sub-index registered a modest 0.1-point increase to 49.5, indicating persistent pressure on domestic and international demand. Analysts suggest the marginal improvement reflects targeted government stimulus measures and inventory replenishment cycles in key industries.
The mixed data comes as policymakers balance structural reforms with efforts to stabilize growth, particularly in strategic sectors like electric vehicles and advanced manufacturing. Market watchers will monitor September data for signs of seasonal demand pickup ahead of year-end production cycles.
