Manufacturing News

China sees improvements in factory activity

China's factory activity improved in August after an unexpected contraction in July, the National Bureau of Statistics said on Wednesday.

The official purchasing managers index for China's manufacturing sector was at 49.4 in August, an improvement over July's reading of 49, data from the NBS showed, staying in the contraction territory for the second consecutive month.

A PMI reading above 50 points to expansion, while one below points to contraction.

Zhao Qinghe, a senior statistician with the NBS, said despite facing disruptions from COVID-19 outbreaks and high temperatures, the economy maintained its recovery momentum in August.

Among 21 surveyed manufacturing sectors, 12 sectors saw an improvement in PMI reading in August.

A sub-index for new orders grew to 49.2 in August from 48.5 a month earlier, while a gauge of production came in at 49.8, flat with the previous month. Also, the sub-index for raw materials came in at 44.3 versus 40.4 a month earlier.

China's non-manufacturing PMI was at 52.6, after 53.8 in July, remaining in expansion territory for the third consecutive month. The country's official composite PMI, which includes both manufacturing and services activity, came in at 51.7, compared with 52.5 in July, according to the NBS.

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