China's factory activity shrinks for second straight month, contracting less than expected
China's manufacturing activity shrank for a second straight month, keeping pressure on Beijing to support the economy as growth loses momentum.
TL;DR
- China's official manufacturing PMI for August was 49.8, indicating a contraction for the second straight month but falling short of market expectations.
- Despite the overall contraction, sub-indexes for production and new orders improved, moving into expansionary territory.
- New export orders also rebounded, suggesting recovering overseas demand.
- Weaknesses persist in employment and raw material inventories, with the non-manufacturing gauge unchanged at 49%.
- Economists anticipate that accelerated fiscal spending by local governments will support economic growth in the coming months.