China’s Factory Activity Hits 5-Month High in August, RatingDog PMI Shows
China’s manufacturing sector expanded in August at its fastest pace in five months, according to a private-sector survey released on Monday. The data offered a rare sign of improvement despite weaker official figures pointing to ongoing challenges.
The RatingDog China General Manufacturing PMI rose to 50.5 in August, up from 49.5 in July and above expectations of 49.7. The reading crossed the critical 50-point mark, signaling a return to growth.
The rebound was driven mainly by a rise in new domestic orders, even as export demand shrank for the fifth consecutive month. Companies also reported the largest build-up of unfinished work in six months.
“Export orders remain in contraction, but the pace of decline has slowed. That’s somewhat encouraging, though domestic demand is still soft. Without stronger local demand, the upside to output may stay limited,” said Yao Yu, founder of RatingDog.
Despite the improvement, manufacturers remained cautious. Employment fell for the fifth month in a row, while rising input costs and supply delays added pressure.
“Manufacturing is contributing to the recovery, but the rebound remains patchy,” Yao added.
The survey contrasted with official PMI data released over the weekend, which showed China’s factory sector contracted for a fifth straight month in August.
