China factory activity shrinks for fifth month in a row
BEIJING
China's factory activity contracted in August, marking five consecutive months of decline, according to an official survey released on Aug. 31, after a trade truce between the U.S. and China was extended for another 90 days.
China’s purchasing managers index in the manufacturing sector rose from 49.3 in July to 49.4 in August, indicating the decline slowed from the previous month, the National Bureau of Statistics said.
PMI is measured on a scale from 0 to 100, where 50 marks the cutoff between expansion and contraction.
The indices measuring manufacturing, new orders and raw material inventory edged up in the sector. But the index measuring employment saw a slight drop.
The survey results came weeks after U.S. President Donald Trump extended a pause in sharp hikes in import duties for 90 days. But uncertainty over tariffs on exports to the U.S. is still looming over the world’s second-largest economy.
China has struggled to maintain a strong economic recovery since the pandemic, as it fights a debt crisis in the crucial property sector, chronically low consumption and elevated youth unemployment.
China's bruising trade war with the United States, now on hold pending a deal, threatens the export-dependent economy.
Beijing and Washington have extended a truce on most reciprocal duties to November 10 as they continue talks.
Senior Chinese trade negotiator Li Chenggang urged "equal dialogue and consultation" between the two nations when he concluded a three-day visit to the United States on Aug. 29, according to a statement from China's commerce ministry.
