China Manufacturing PMI Rises to 49.8% in August 2026
China's manufacturing PMI rose to 49.8% in August 2026, up 0.6 percentage points from July, signaling a modest recovery in business sentiment. The non-manufacturing business activity index held at 49.0%, while the composite PMI output index edged up to 49.5%. Production and new orders both returned to expansion, though the overall manufacturing gauge remained below the 50 threshold for a second consecutive month.
The China Purchasing Managers' Index for August 2026 was released on August 31. The manufacturing PMI came in at 49.8%, up 0.6 percentage points from the previous month, indicating a rebound in business sentiment. The non-manufacturing business activity index stood at 49.0%, unchanged from the prior month, while the composite PMI output index rose 0.2 percentage points to 49.5%. Among the 21 manufacturing industries surveyed, 16 reported higher PMI readings than in July. The manufacturing PMI has now remained below the 50 threshold for a second consecutive month.
By enterprise size, the large-enterprise PMI rose 1.1 percentage points to 50.6%, returning above the threshold. The medium-enterprise PMI fell 0.3 percentage points to 49.4%, staying below the threshold, while the small-enterprise PMI rose 0.5 percentage points to 47.9%, also below the threshold. Among the five sub-indices composing the manufacturing PMI, the production index, new orders index, and supplier delivery time index all remained above the threshold, while the raw material inventory index and employment index stayed below. The production index rose 0.5 percentage points to 50.4%, and the new orders index climbed 2.1 percentage points to 50.6%. The raw material inventory index fell 0.2 percentage points to 48.1%, the employment index dropped 0.3 percentage points to 48.7%, and the supplier delivery time index rose 0.6 percentage points to 50.1%.
Both production and demand expanded simultaneously. Industries such as electrical machinery and equipment, and computer, communication and electronic equipment, saw their production and new orders indices both above 53.0%, indicating rapid release of output and demand. In contrast, industries including chemical raw materials and chemical products, and smelting and pressing of ferrous metals, had both indices below the threshold. Driven by the rebound in production and demand, the purchasing volume index rose 1.1 percentage points to 50.5%. The new export orders index rose 0.5 percentage points to 50.1%, while the import index increased 1.1 percentage points to 48.6%.
The equipment manufacturing and high-tech manufacturing PMIs stood at 51.4% and 52.9%, respectively, remaining in expansion territory. The consumer goods and high-energy-consuming industries PMIs were 49.0% and 47.9%, up 1.2 and 0.9 percentage points from the previous month, respectively. Affected by rising prices of crude oil and non-ferrous metals, the manufacturing sub-indices for major raw material purchase prices and ex-factory prices rose to 56.6% and 50.4%, up 3.4 and 2.6 percentage points from the prior month, with the ex-factory price index returning to expansion. Both price indices for the smelting and pressing of non-ferrous metals exceeded 60.0%.
In the non-manufacturing sector, the construction business activity index fell 0.1 percentage points to 46.9%, while the services business activity index held at 49.3%. Within services, postal services, telecommunications, broadcasting, television and satellite transmission services, and internet software and information technology services all remained in high-expansion territory above 55.0%. Wholesale, retail, and capital market services saw their business activity indices below the threshold. The construction new orders index rose 2.3 percentage points to 42.4%, while the services new orders index fell 0.7 percentage points to 44.5%.
The construction business activity index eased slightly, as construction progress slowed in some regions due to extreme weather such as heavy rain and typhoons. The rebound in the composite PMI output index indicates that the overall business climate for enterprise production and operations has improved somewhat.