**China’s manufacturing sector showed signs of recovery in August, with the official Purchasing Managers’ Index (PMI) rising to 50.1, beating expectations and indicating a return to growth after two months of contraction.**.
The National Bureau of Statistics (NBS) reported on Friday that the manufacturing PMI, a gauge of factory activity, rose from 49.0 in July, indicating an expansion in the sector. This was above the 50.0 mark that separates growth from contraction, and also exceeded the market consensus of 49.2..
The sub-index for production increased from 49.8 to 50.4, suggesting an uptick in output. The new orders sub-index also rose, from 48.2 to 49.6, indicating an improvement in demand..
Economists said the improvement in the manufacturing PMI is a positive sign for the Chinese economy, which has been hit by the ongoing trade war with the United States and a slowdown in global demand..
