China’s factory activity contracts in August despite an uptick in export demand

An official survey shows China's factory activity improved in August, with export demand holding strongByCHAN HO-HIM AP business writerAugust 31, 2026, 12:04 AMHONG KONG -- HONG KONG (AP) — China’s factory activity improved marginally in August as export demand remained robust, though overall manufacturing still was in a contraction. China’s official manufacturing purchasing managers' index, or PMI, recovered slightly to 49.8 in August from 49.2 in July, according to the National Bureau of Statistics.The report Monday was better than what economists had expected.PMI readings, based on monthly surveys of companies, are measured on a scale of 0 to 100. A reading above 50 indicates an expansion, while below 50 reflects a contraction.“Manufacturing activity rebounded thanks to strong export demand,” Nguyen Hoang Nam, a China economist at Capital Economics, wrote in a research note Monday.Several PMI sub-indexes returned to expansion in August. The sub-index on production advanced to 50.4, from 49.9 in July. The new orders sub-index recovered to 50.6 from 48.5, while new export orders improved to 50.1 from 49.6.Huo Lihui, a chief statistician with the National Bureau of Statistics, said...