China's manufacturing sector saw a decline in activity again in August, but the pace of the decline was milder than market expectations, according to CNBC.
According to the National Bureau of Statistics of China, the official manufacturing purchasing managers' index (PMI) stood at 49.8 points, up from 49.2 points in the previous month and exceeding experts' forecast of 49.6 points.
The country's economy continues to feel pressure from weak domestic demand and a prolonged downturn in the real estate market. Economic growth slowed to 4.3% in the second quarter, marking the lowest figure since the end of 2022.
At the same time, consumer spending has stagnated, urban investments have decreased, and unemployment has risen. Retail sales, industrial production, and corporate profit growth have also weakened.
Exports remain one of the main pillars of economic growth, supported by a global spending boom on artificial intelligence infrastructure that maintains demand for Chinese technology products.
The Chinese authorities have announced their readiness to implement new support measures, including increasing budget expenditures and easing monetary policy. However, experts believe that the scale of stimulus programs is likely to be limited.
