Activity in China’s manufacturing sector contracted for a fifth straight month in August, according to an official survey, adding pressure on policymakers in the world’s second-largest economy to take action to shore up growth.The country’s manufacturing purchasing managers’ index was 49.7 for the month. A reading of below 50 indicates contraction compared with the previous month. The non-manufacturing PMI, which covers services and industries such as agriculture and construction, was 51.
A series of disappointing data has fuelled concerns about China’s economy, where a widely anticipated rebound following the lifting of Covid-19 restrictions at the start of 2023 has failed to fully materialise.
China’s property sector, which typically accounts for more than a quarter of the overall economy, has slowed markedly because of a two-year liquidity crisis, while weaker global consumption has weighed on the country’s previously booming export sector. Consumer prices in July fell year on year for the first time since early 2021.