A worker wearing a face
mask works on a production line manufacturing bicycle steel rim at a factory,
as the country is hit by the novel coronavirus outbreak, in Hangzhou, Zhejiang
province, China March 2, 2020. China Daily via REUTERS/File Photo Acquire
BEIJING, Aug 31 (Reuters) - China's manufacturing
activity contracted for a fifth straight month in August, an official survey
showed on Thursday, maintaining pressure on officials to provide support to
shore up economic growth amid soft demand both at home and abroad.
On the brighter side, new orders reverted to expansion for the
first time in five months and factory owners indicated that producer prices
were improving for the first time in seven months, although the vast services
sector continued to trend downwards.
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The official purchasing managers' index (PMI) rose to 49.7 from
49.3 in July, according to the National Bureau of Statistics, staying below the
50-point level demarcating contraction from expansion. The reading was above a
forecast of 49.4.
The PMI provides the first clue about how the world's
second-largest economy fared in August, following a torrid run of trade,
factory and retail data in July. However, in a hopeful sign for growth,
conditions did not materially worsen even though the survey showed factories
under persistent pressure.