China’s Factory Activity Slows in August Despite Trade Truce With U.S.

China’s factory activity contracted for a fifth straight month in August despite a temporary trade truce with the US, the Associated Press (AP) reported.

While readings below 50 signal contraction, the slower decline suggested some stabilization. (Photo: Lindsay Maizland Flickr)

The official manufacturing Purchasing Managers’ Index edged up from 49.3 in July to 49.4 in August, the National Bureau of Statistics said.

While readings below 50 signal contraction, the slower decline suggested some stabilization. Sub-indices for new orders and inventories improved slightly, though employment slipped.

The survey followed President Donald Trump’s decision to extend a 90-day pause on tariff hikes.

But uncertainty over future US duties continues to weigh on the world’s second-largest economy, which also faces headwinds from a property downturn, rising unemployment, and widespread flooding from seasonal rains that disrupted businesses.