Official data: China’s manufacturing activities remained in contraction in August

The latest data from the National Bureau of Statistics (NBS) showed that China’s manufacturing activities improved slightly from the previous month but remained in the contraction terrain. Renewed COVID-19 restrictions coupled with the electricity rationing and the interminable property market turmoil weighed on the sector. 

The official manufacturing purchasing managers' index (PMI) is reported at 49.4 compared to 49.0 in July. 

The new export order index rose 0.7 percentage points to 48.1 in August. 

The non-manufacturing PMI, which consists of indexes for construction and services fell to 52.6 in August from 53.8 in July. 

Industry experts believed that the Chinese government might continue to tighten the COVID-19 control measure ahead of the Communist Party Congress in October. Small manufacturers would be most affected by the Zero-COVID policies as they are not equipped to mitigate the disruptions.