By XIN Yuan

China's manufacturing Purchasing Managers' Index (PMI) rose by 0.4 percentage points from the previous month to 49.7 percent, still remained below the threshold of 50 percent for the fifth consecutive month. A PMI reading above 50 percent indicates expansion in manufacturing, while below 50 percent indicates contraction.

In terms of specific indices, the production index and new orders index were 51.9 percent and 50.2 percent, respectively, increasing by 1.7 and 0.7 percentage points from the previous month. Both indices reached their highest points in nearly five months, indicating improved market demand and enhanced manufacturing expansion. The raw materials inventory index was 48.4 percent, up by 0.2 percentage points from the previous month, with the decline in major raw material inventory continuing to narrow.

Driven by improvements in production and demand, corporate procurement has accelerated, and the volume index has risen into the expansion range at 50.5 percent.

The purchasing price index and ex-factory price index for major raw materials increased by 4.1 and 3.4 percentage points from the previous month, reaching 56.5 percent and 52.0 percent, respectively. The ex-factory price index has returned to the expansion zone.

After the July 24 Political Bureau meeting outlined the economic work for the second half of the year, both central and local governments introduced a series of measures to stabilize growth, involving the recovery and expansion of consumption, stabilizing the real estate market, promoting private investment, and interest rate cuts.

The non-manufacturing PMI hit 51.0 percent in August, down by 0.5 percentage points from the previous month. In terms of sub-industries, the construction business index was 53.8 percent, up by 2.6 percentage points, and the service business was 50.5 percent, down by 1.0 percentage points.