China manufacturing PMI rises to 49.8 but stays below 50
China's manufacturing sector saw a bit of improvement in August 2026, with the official PMI rising to 49.8 from July's 49.2, slightly better than what experts predicted.
Still, it stayed just under the key 50-point line for the second month, meaning factories are shrinking rather than growing.
The country's economy is also feeling the squeeze from slower GDP growth and a struggling property market.
China exports strong, support likely limited
Even with these hurdles, China found some relief through strong exports, especially tech goods linked to AI, which have kept outbound shipments growing fast this year.
To help boost things further, officials are promising more government spending and easier borrowing, though economists expect the scale of any additional support to remain limited for now.