China Factory Activity Contracts for Second Straight Month in August
· Business · CNBC, The Independent
China's manufacturing activity shrank for the second consecutive month in August, remaining under pressure as economic growth loses momentum. The official purchasing managers' index edged up to 49.8 in August from 49.2 in July, outperforming Reuters-polled economists' consensus forecast of 49.6. China's broader economy faces mounting strain after growth slowed to 4.3% in the second quarter, driven by weak domestic demand and a prolonged property slump. Consumer spending has stalled, urban investment has contracted, and unemployment has ticked higher as the economic malaise deepened in the second half of the year. Exports have served as one of the few pillars supporting growth, aided by a global surge in artificial intelligence infrastructure spending that lifted demand for Chinese tech goods.
Why it matters
The persistent contraction keeps pressure on Beijing to introduce fresh policy measures and fiscal support to shore up the slowing economy.
Read the original report — CNBC
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