China’s manufacturing sector returned to expansion in August, but a fallback in construction activity took non-manufacturing growth down a peg.
The manufacturing purchasing managers’ index published by the National Bureau of Statistics rose to 50.4 in August, back above the 50-point line delineating growth from contraction after falling into contraction in July. The reading was well above a median forecast from economists of 49.8.
those gains were once again concentrated among large-scale enterprises, which saw activity come in at 51.8, up 0.6 percentage points. Mid-sized businesses remained in contraction with a second straight reading of 48.9, while smaller businesses recovered half a percentage point from July’s reading but remained well below a return to growth at 47.4.