August 31, 2025

China’s factory output gave a little jump in August, but the overall picture isn’t bright yet. Official data showed the Purchasing Managers’ Index (PMI) stood at 49.4 in August, just a tiny step up from 49.3 in July. Remember, a number above 50 means growth, and China hasn’t crossed that threshold since March! The National Bureau of Statistics (NBS) shared this data on Sunday, drawing attention to small signs of improvement but also highlighting ongoing challenges. According to NBS statistician Zhao Qinghe, "overall economic prosperity continues to expand" despite the difficulties. He added, "The business climate has improved." But what’s really behind this slow climb? In July, harsh weather like floods and scorching heat were named as big troublemakers for manufacturing. China’s economy has had a tough ride since the pandemic. Its property sector is dealing with a heavy debt crisis, people are spending less than expected, and youth unemployment remains stubbornly high. On top of this, tensions with the United States have kept the export-heavy economy on its toes. The US and China are currently in a trade truce, extending most tariffs till November 10 while talks continue. Senior Chinese trade negotiator Li Chenggang wrapped up a three-day visit to Washington with a call for fairness. He said, "equal dialogue and consultation" between the two countries is vital, according to a statement from China’s commerce ministry. With the tariff deadline fast approaching, all eyes are on the negotiations. Will the trade war cool down or flare up again in November? For now, China’s factory sector is still chugging along, hopeful but cautious.

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Tags: China economy, Factory output, Purchasing managers' index, Us-china trade talks, Tariff deadline,