China factory activity improves while services stay weak
China manufacturing activity improved slightly in August as demand increased. However, the services sector remained weak, highlighting ongoing economic imbalances and sluggish domestic consumption.
China's official manufacturing PMI rose to 49.8 in August from 49.2 in July, signaling easing factory contraction on stronger demand. The reading beat the median market forecast of 49.6 in a Reuters poll. The divergence highlights a persistent recovery imbalance driven by exports rather than domestic consumption.
