Story · China · Published 2 Sept 2026, 12:19
Purchasing Managers’ Index for August 2026
China's manufacturing PMI rose to 49.8% in August 2026, leaving the index below the expansion threshold.
30-second read
49.8%
Manufacturing PMI
0.6%
Monthly PMI change
50.4%
Production index
Exam link: Economic growth → business activity and investment → output, employment and aggregate demand
Understand the story +
China's National Bureau of Statistics reported a manufacturing PMI of 49.8% in August 2026, a 0.6% increase from the previous month. The production index was 50.4% and the new-order index was 50.6%.
What happened
The manufacturing PMI was 49.8% in August 2026, moving 0.6% from the previous month. Production stood at 50.4% and new orders at 50.6%.
Why it matters
PMI surveys are timely indicators of business conditions. Readings above 50 generally indicate expansion, while readings below 50 indicate contraction, making the release useful evidence on the direction of aggregate demand and industrial activity.
Economic context
For A-Level Economics, this is current evidence for growth, business confidence and the economic cycle. PMI is a diffusion index rather than a direct measure of GDP, so use it as a leading indicator and evaluate it alongside official output data.
All key data +
- New-order index
- 50.6%
- Production index
- 50.4%
- Manufacturing PMI
- 49.8%
- Monthly PMI change
- 0.6%
Use it in an exam +
Evidence
China's manufacturing PMI rose to 49.8% in August 2026, leaving the index below the expansion threshold.
Explain
PMI surveys are timely indicators of business conditions. Readings above 50 generally indicate expansion, while readings below 50 indicate contraction, making the release useful evidence on the direction of aggregate demand and industrial activity.
Evaluate
For A-Level Economics, this is current evidence for growth, business confidence and the economic cycle. PMI is a diffusion index rather than a direct measure of GDP, so use it as a leading indicator and evaluate it alongside official output data.
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