China Factory Activity Growth Beats Forecasts

The RatingDog China Manufacturing PMI increased to 51.5 in August 2026 from July’s four-month low of 50.9, surpassing forecasts of 51, as output and new orders rose at faster paces. New orders rose for the fifteenth consecutive month, the longest period of growth since 2018, supported by the fastest rise in foreign sales in six months. Output grew for nine consecutive months, with the latest expansion being the strongest in three months. Meanwhile, employment was steady after rising in the previous two months, while backlogs rose for the seventh month running at the fastest rate since March. Purchasing activity rose after falling in July, while delivery times were little changed compared with July. On the price front, input price inflation accelerated for the first time in four months, though modestly, due to higher material prices. However, output prices fell for the first time in 2026 so far. Lastly, business sentiment weakened to a seven-month low.






