China Manufacturing PMI Rises to 49.8 in August but Stays in Contraction for Second Month
China's official manufacturing PMI improved by 0.6 points to 49.8 in August 2026, with new orders jumping to 50.6 and production reaching 50.4, yet the headline index remained below the 50-point expansion threshold for a second consecutive month. Large enterprises moved into expansion at 50.6 while medium and small firms stayed in contraction, and the employment subindex slipped further to 48.7. The composite PMI, which includes services and construction, also held below 50 at 49.5, pointing to broad-based softness across China's economy.