China’s Factory Contraction Eases but Weak Services Cloud the Recovery

China’s manufacturing downturn eased in August, but official indicators continued to show contraction and persistent weakness in the services sector, Reuters reported.

The manufacturing purchasing managers’ index rose to 49.8 from 49.2 in July. A reading below 50 still indicates contraction. The non-manufacturing index remained at 49.0, pointing to subdued domestic demand even as high-technology and equipment manufacturing showed relative strength.

The figures suggest that industrial improvement has not yet developed into a broad-based recovery. Economists are watching household consumption, property activity, investment and the scale of future policy support for clearer evidence of momentum.

Source: Reuters, citing official Chinese data and analyst commentary.