China’s factory activity contracted in August, marking five consecutive months of decline, according to an official survey released Sunday, after a trade truce between the U.S. and China was extended for another 90 days.
China’s purchasing managers index in the manufacturing sector rose to 49.4 in August from 49.3 in July, indicating the decline slowed from the previous month, the National Bureau of Statistics said. PMI is measured on a scale from 0 to 100, with 50 marking the cutoff between expansion and contraction.
The indices measuring manufacturing, new orders and raw material inventory edged up in the sector, while the index measuring employment saw a slight drop.
The survey results came weeks after U.S. President Donald Trump extended a pause in sharp hikes in import duties for 90 days. But uncertainty over tariffs on exports to the U.S. is still looming over the world’s second-largest economy.
This compounds pressures on China’s economy, from a property sector downturn to a rising jobless rate, among other factors. The country has also been enduring floods from torrential seasonal rains that have disrupted business activity in parts of the country.
National Bureau of Statistics senior statistician Zhao Qinghe said the manufacturing PMI, non-manufacturing PMI and overall PMI all grew in August, signalling the country’s overall economic sentiment continued to improve.
In a statement Saturday, China’s Ministry of Commerce said its international trade representative Li Chenggang visited the U.S. last week to meet with American officials on implementing the consensuses of their state leaders, trade talks between both sides, and economic and trade ties between the two countries.`
Li stressed that China and the U.S. should adhere to the principles of mutual respect, peaceful coexistence and win-win cooperation, managing differences and expanding cooperation through equal dialogue, the ministry said.
During his trip, he also met with business representatives, it added.