China's Factory Activity Shrinks for Second Straight Month, Contracting Less Than Expected China's manufacturing sector has contracted for the second consecutive month in August, with the official purchasing managers' index (PMI) coming in at 49.
8, according to the National Bureau of Statistics. While this decline is less severe than anticipated, it underscores a Chinese economy struggling to find its footing. Growth has been slowing since mid year, hitting 4.
3% in the second quarter – the weakest pace since late 2022. The main culprits are soft domestic demand and an ongoing property market slump, which have weighed heavily on activity.