China Manufacturing PMI Rises to 49.8 as Non-Manufacturing Stays at 49.0
Updated
Updated · Forex Factory · Aug 30
China Manufacturing PMI Rises to 49.8 as Non-Manufacturing Stays at 49.0
3 articles · Updated · Forex Factory · Aug 30
Summary
China’s official manufacturing PMI rose to 49.8 in August from 49.2 in July, topping market expectations and marking an improvement even as factory activity remained below the 50 expansion line.
Non-manufacturing PMI held at 49.0, showing services and construction stayed weak and leaving both major gauges in contraction territory.
The mixed data had little immediate market impact: AUD/USD, often used as a China proxy, was down 0.04% at 0.7162 after the release.
The August readings add to pressure on Beijing to bolster growth as soft domestic demand, a prolonged property slump and sluggish consumer spending continue to weigh on the economy.
With China's property crisis crushing household wealth, can its AI export boom truly save the economy from a prolonged structural collapse?
As Beijing's production-first model fuels intense price wars, will constrained local governments eventually be forced to abandon producers for consumer bailouts?