China Manufacturing PMI Rises to 49.8 in August but Remains in Contraction

China's manufacturing sector contracted for a second consecutive month in August, though the pace of decline slowed and key indicators showed improvement, highlighting persistent economic challenges despite some bright spots in exports and high-tech production. The official manufacturing Purchasing Managers Index (PMI) rose to 49.8 in August from 49.2 in July, according to data released by the National Bureau of Statistics on Monday. While the reading remained below the 50-point threshold that separates expansion from contraction, it exceeded the median forecast of 49.6 from a Reuters poll of economists. The data revealed a mixed picture of the world's second-largest economy. Subindexes for new orders and production both returned to expansion territory, with new orders climbing to 50.6 from 48.5 and production advancing to 50.4. New export orders also rebounded to 50.1, up from 49.6 in July, underscoring the role of external demand in supporting the factory sector.