China factory activity extends slide in August as headwinds rise
Published Sat, Aug 31, 2024 · 11:10 AM

CHINA’s factory activity contracted for a fourth straight month in August, a sign the world’s second-biggest economy remains on a shaky footing this quarter.

The official manufacturing purchasing managers’ index declined to 49.1 from 49.4 in July, the National Bureau of Statistics said on Saturday (Aug 31).

The median forecast of economists surveyed by Bloomberg News was 49.5. It has been below the 50-mark separating growth from contraction for all but three months since April 2023.

China’s US$17 trillion economy has been struggling as a prolonged property downturn weighs on consumers and businesses.

Recent government efforts – including interest-rate cuts – to boost sentiment have yet to turn things around, meaning the world’s No 2 economy continues to lean on manufacturing to keep its growth target in sight.

As trade tensions with the US and Europe increase, headwinds for the manufacturing sector are growing.

Source: Business Times