China's manufacturing PMI rises to 49.4 in August, indicating improved business confidence

<article><section data-type="rtext"><img data-alt="A worker operates intelligent numerical control device at a smart workshop of a coil factory in Harbin Electric Machinery Company Ltd. in Harbin, northeast China's Heilongjiang Province, July 24, 2025. (Xinhua/Wang Song)" src="//img.huanqiucdn.cn/dp/api/files/imageDir/89d74dda18dda7b15bdec0010aef56f3.jpeg?imageView2/2/w/750" />The purchasing managers' index (PMI) for China's manufacturing sector rose to 49.4 in August, up 0.1 points from a month earlier, showing signs of improvement as emerging industries continue to gain traction and overall business confidence further improves, latest data from the National Bureau of Statistics (NBS) revealed on Sunday. A PMI reading above 50 indicates expansion, while a reading below 50 suggests contraction. NBS statistician Zhao Qinghe said the improvement reflects accelerated production, the growing role of the high-tech industries, and more positive business expectations. The sub-index for production rose to 50.8, up 0.3 points from the previous month, indicating faster manufacturing output, while the new orders index edged up 0.1 points to 49.5. Notably, the PMI for large enterprises returned to expansion territory at 50.8, up 0.5 points from the previous month and remaining in the expansion territory for the fourth consecutive month, indicating accelerated pace of growth, Zhao said. The high-tech manufacturing PMI stood at 51.9 in August, up 1.3 points compared with last month, underscoring an increasingly leading role. Market expectations also improved. The production and business activity expectation index rose to 53.7, up by 1.1 points from a month earlier, indicating that manufacturers remain confident in near-term growth prospects, Zhao said. The PMI for China's non-manufacturing sector reached 50.3 in August, up 0.2 points from the previous month, indicating continued expansion, according to the NBS data. The service sector continued to expand, with its sub-index standing at 50.5 in August, the data showed. Business activity indices in sectors related to capital market services, railway transport, air transport, telecommunications, broadcasting and television, satellite transmission services are all above 60, demonstrating a relatively high level of activity. Especially, business activity indices related to capital market services have been above 70 for the second consecutive month. In August, China's composite PMI stood at 50.5, up 0.3 points from July, remaining above the expansion threshold, indicating faster growth in production output and business activity, Zhao noted.</section></article>

The purchasing managers' index (PMI) for China's manufacturing sector rose to 49.4 in August, up 0.1 points from a month earlier, showing signs of improvement as emerging industries continue to gain traction and overall business confidence further improves, latest data from the National Bureau of Statistics (NBS) revealed on Sunday.

A PMI reading above 50 indicates expansion, while a reading below 50 suggests contraction.

NBS statistician Zhao Qinghe said the improvement reflects accelerated production, the growing role of the high-tech industries, and more positive business expectations.

The sub-index for production rose to 50.8, up 0.3 points from the previous month, indicating faster manufacturing output, while the new orders index edged up 0.1 points to 49.5.

Notably, the PMI for large enterprises returned to expansion territory at 50.8, up 0.5 points from the previous month and remaining in the expansion territory for the fourth consecutive month, indicating accelerated pace of growth, Zhao said.

The high-tech manufacturing PMI stood at 51.9 in August, up 1.3 points compared with last month, underscoring an increasingly leading role.

Market expectations also improved. The production and business activity expectation index rose to 53.7, up by 1.1 points from a month earlier, indicating that manufacturers remain confident in near-term growth prospects, Zhao said.

The PMI for China's non-manufacturing sector reached 50.3 in August, up 0.2 points from the previous month, indicating continued expansion, according to the NBS data.

The service sector continued to expand, with its sub-index standing at 50.5 in August, the data showed. Business activity indices in sectors related to capital market services, railway transport, air transport, telecommunications, broadcasting and television, satellite transmission services are all above 60, demonstrating a relatively high level of activity. Especially, business activity indices related to capital market services have been above 70 for the second consecutive month.