BEIJING, 31st August, 2026 (WAM) - China's factory activity showed improving signs in August, driven by the continuous expansion of new growth drivers, notably in high-tech and equipment manufacturing.
According to China Central Television (CCTV) report, The purchasing managers' index (PMI) for the manufacturing sector stood at 49.8 in August, up 0.6 percentage points from the previous month, official data showed on Monday.
The PMI for equipment manufacturing registered at 51.4, while the high-tech manufacturing PMI reached 52.9, both remaining firmly in the expansion territory above the 50-point threshold that separates growth from contraction.
These metrics signal sustained momentum in advanced manufacturing and underscore an accelerating structural upgrade across the broader industrial sector.
"The transition between old and new growth drivers in manufacturing is accelerating. New growth engines such as equipment manufacturing and high-tech manufacturing are expanding at a notably faster pace than traditional sectors like basic raw materials and consumer goods, providing an increasingly strong anchor for macroeconomic growth," said He Hui, vice president of the China Federation of Logistics and Purchasing.
By enterprise size, large manufacturing enterprises recorded a PMI of 50.6 in August, up 1.1 percentage points from July, reflecting a marked improvement in operations. Medium-sized enterprises saw a modest pullback in the business climate level, while small enterprises posted a slight uptick in activity.
Meanwhile, influenced by upward movements in global crude oil and non-ferrous metal prices, the purchasing price index for major raw materials and the ex-factory price index for manufacturing stood at 56.6 and 50.4, respectively, up 3.4 percentage points and 2.6 percentage points from the previous month.
Analysts noted that the rebound in output prices should help manufacturers offset rising input costs and improve their profit margins.
"From an industry perspective, both price indexes for non-ferrous metal smelting and processing climbed above 60, reflecting significant increases in both raw material procurement costs and finished product selling prices," said Huo Lihui, chief statistician of the National Bureau of Statistics.
Looking ahead, as the disruptive effects of summer heat and heavy rainfall fade, analysts expect the manufacturing sector to see further improvements in September with a significant rebound in traditional peak-season demand for automobiles, computers, consumer electronics, and textiles.