ECONOMY

China Factory Contraction Slows as Orders Rebound

Published: Sep. 1, 2026 2:41 p.m. GMT+8

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China’s manufacturing activity contracted at a slower pace in August as production and new orders returned to expansion, offering a bright spot for the world’s second-largest economy.

The manufacturing purchasing managers’ index (PMI) rose to 49.8 from July’s 49.2, the National Bureau of Statistics said Monday. A reading below 50 indicates contraction.

Persistent weakness in services and construction kept the nonmanufacturing PMI flat at 49. The composite PMI edged up to 49.5.

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China’s manufacturing PMI rose to 49.8 in August from 49.2 in July, still below 50.
Production and new orders returned to expansion, at 50.4 and 50.6 respectively.
Nonmanufacturing PMI stayed at 49; manufacturing employment subindex slipped to 48.7.

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What Happened When

July 2026：: Manufacturing PMI was 49.2.

August 2026：: Manufacturing PMI rose to 49.8; nonmanufacturing PMI was flat at 49; composite PMI edged up to 49.5; new orders subindex jumped to 50.6; production gauge rose to 50.4; manufacturing jobs subindex slipped to 48.7.