China's Manufacturing Struggles Amid Economic Uncertainty

In August, China's manufacturing sector contracted for the fifth month in a row, according to an official survey released Sunday. This highlights that manufacturers are still in a holding pattern, seeking clarity on trade discussions with the U.S. amid ongoing weak domestic demand.

The official purchasing managers' index (PMI) slightly rose to 49.4 in August from 49.3 in July, staying under the critical 50-point line that designates expansion from contraction. This reading fell short of the median forecast of 49.5, according to a Reuters poll, illustrating the economic uncertainties China faces, such as U.S. tariffs, a faltering property market, and job insecurity.

Contrarily, the non-manufacturing sector, encompassing services and construction, showed a quicker expansion, lifting the PMI to 50.3 from 50.1 in August, the National Bureau of Statistics reported. The composite PMI, which accounts for both manufacturing and non-manufacturing, reached 50.5, up from 50.2 in July.

(With inputs from agencies.)