China’s factory activity improved in August while staying in contraction, showing glimmers of a pickup for the economy as policymakers eye new measures. The Caixin/S&P Global manufacturing Purchasing Managers' Index (PMI) rose to 49.1 from 47.9 in July, marking the fastest expansion in five months. New export orders grew for the first time in six months, offering relief to manufacturers facing weak global demand.

However, output and new orders remained below the 50-level threshold separating growth from contraction. Caixin said policymakers are closely monitoring the data as they prepare additional support measures to stabilize the recovery. The Caixin China General Manufacturing PMI business expectations index improved to 53.1 from 51.5, the highest since February 2022.

Caixin said policymakers are closely monitoring the data as they prepare additional support measures to stabilize the recovery. The Caixin China General Manufacturing PMI business expectations index improved to 53.1 from 51.5, the highest since February 2022.