China's manufacturing sector contracts for fifth straight month, PMI at 49.4, below growth threshold.

China's manufacturing activity shrank for the fifth month in August, as the official Purchasing Managers' Index (PMI) rose slightly to 49.4, below the 50-mark indicating contraction. The economy faces challenges like weak exports due to US tariffs, a property downturn, job insecurity, and extreme weather, threatening its 2025 growth target. Despite these issues, the non-manufacturing PMI, including services and construction, expanded slightly to 50.3.