China Manufacturing PMI Hits 5-Month High

The RatingDog China General Manufacturing PMI rose to 50.5 in August 2025, above both July’s level and the market consensus of 49.5, marking the highest reading since March. Output returned to growth as new orders and purchasing activity picked up, while the decline in foreign demand eased. The latest figure also marked the second increase in output in the past three months, though the upturn was only marginal. Stronger inflows of new orders led to a renewed accumulation of backlogged work in August. However, firms remained cautious regarding staffing levels, opting to reduce headcount for the fifth consecutive month. On prices, input cost inflation accelerated to the steepest rate since November 2024, although it remained below the series average. Selling prices were unchanged, following an eight-month decline amid intense market competition. Lastly, business sentiment strengthened to a five-month high, supported by optimism about improving conditions and expansion-driven sales.