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China’s Factories Still Struggling as Power Cuts Curb Output

  • Official manufacturing PMI still in contraction in August
  • ‘Negative factors’ include Covid outbreaks, heatwave: NBS
Bloomberg business news
WATCH: China’s factory activity contracted again. Wei Yao of Societe Generale CIB discusses what the latest figures say about the state of the economy.Source: Bloomberg
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China’s factory activity contracted in August for a second straight month, with the economy taking a hit from power shortages spurred by a historic drought, on top of a property market crisis and Covid outbreaks.

The official manufacturing purchasing managers index rose to 49.4 from 49 in July, according to a statement from the National Bureau of Statistics on Wednesday. That was slightly higher than the 49.2 in a Bloomberg survey of economists, but still below the 50 mark that separates expansion from contraction.