ICYMI - China data showed manufacturing sector contracted for a fifth straight month

Data over the weekend:

China Manufacturing PMI (August 2025) 49.4 (expected 49.5) Services 50.3 (expected 50.3)

Recap, ICYMI:

• manufacturing sector contracted for a fifth straight month in August
• official PMI edging up to 49.4 from 49.3 but staying below the 50 threshold
• non-manufacturing activity grew modestly, with the services and construction PMI rising to 50.3
• composite index improved to 50.5

The economy remains under pressure from weak demand, U.S. tariffs, a prolonged property slump, and rising local government debt, casting doubt on Beijing’s 2025 growth target. Although the U.S.–China tariff truce was extended for 90 days, ongoing uncertainty is denting confidence. Consumer subsidies have increased, but households are holding back on spending and mortgage demand, underscored by a rare contraction in bank lending in July.

Also from the weekend:

• China property sales drop 17.6% in August, housing slump hits sixth straight month

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The private survey manufacturing PMI is due today.

• Expected to come in at 49.7, up from 49.5 a month prior.
• Economic calendar in Asia 01 September 2025 - Monday's calendar in China manufacturing PMI