A key gauge of China’s manufacturing activity has fallen below the boom-or-bust line for the fifth straight month, as cautious views spread among businesses in the face of US tariff policies on top of stagnant domestic demand.
The National Bureau of Statistics says the manufacturing Purchasing Managers’ Index was 49.4 in August. That’s up 0.1 from July, but still below the 50-point threshold.
Figures above the mark indicate expansion, while those below suggest contraction. The Bureau surveyed 3,200 manufacturers.
The situation in August is blamed on factors such as a decline in new orders and a slight worsening in employment.
The gauge for large companies stood at 50.8, but midsize firms were at 48.9, and small enterprises at 46.6.
The readings for non-manufacturers, such as service sector businesses, rose 0.2 percentage points from the previous month to 50.3.
The United States and China are continuing tariff negotiations after slashing additional levies on each other. They have set the duration for the talks until November.
Observers are watching how the talks will go, as they may cause more trade friction between the two countries, as well as how they will affect business sentiment.
