China's manufacturing purchasing managers' index (PMI) rebounded to 49.8 in August 2026, up 0.6 percentage points from the previous month, while the non-manufacturing business activity index held steady at 49.0, official data showed.

The composite PMI output index rose 0.2 percentage points month on month to 49.5, indicating a slight improvement in overall economic output, according to the National Bureau of Statistics (NBS).

Of the 21 manufacturing sectors surveyed, 16 reported higher PMI readings than the previous month, pointing to broad-based improvement across the industry.

Production and new orders both expanded in August, with the sub-indices rising to 50.4 and 50.6 respectively, up 0.5 and 2.1 percentage points from July. Sectors including electrical machinery and computer communications equipment saw both indices above 53.0, while chemicals and ferrous metal smelting remained below the 50 threshold, reflecting weaker activity.

The purchasing volume index rose 1.1 percentage points to 50.5, driven by recovering output and demand.

Equipment manufacturing and high-tech manufacturing PMIs stood at 51.4 and 52.9 respectively, remaining in expansion territory, while consumer goods and high-energy-consuming industries posted readings of 49.0 and 47.9, up 1.2 and 0.9 percentage points from the previous month.

Input price and factory-gate price indices for manufacturers both rose driven by rising global crude oil and metal prices, reaching 56.6 and 50.4 respectively, up 3.4 and 2.6 percentage points, with the latter returning to expansion. Non-ferrous metal smelting and rolling processing industry saw both price indices climb above 60.0.

Large manufacturers saw their PMI rise 1.1 percentage points to 50.6, returning to expansion, while medium-sized enterprises dipped 0.3 percentage points to 49.4 and small firms edged up 0.5 percentage points to 47.9.

The services business activity index held at 49.3 in August, with postal services, telecommunications and internet software sectors all above 55.0. Wholesale, retail and capital market services remained below the threshold, indicating softer conditions. The services business expectations index stood at 55.5, staying in high-optimism territory.

Construction activity eased slightly to 46.9, down 0.1 percentage point from July, as heavy rain and typhoons in some regions slowed project progress. The construction business expectations index was unchanged at 51.8.