China's manufacturing PMI tops bets, still contracting
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The news: China's manufacturing purchasing managers index (PMI) has slightly beaten expectations, but it is still indicating contraction of factory activity in the world's second-largest economy.
The numbers: Manufacturing PMI came in at 49.7, beating analysts' expectations of 49.4 and improving on July's 49.3 figure. It is the fifth consecutive month below the 50.0 figure that separates expansion from contraction. China's non-manufacturing PMI came in at 51.0, down from 51.5 in July and sliding for the fifth straight month.
The context: While today's figures are a small step in the right direction, there is still an expectation of downward pressure on China's manufacturing sector in 2Q23, amid concerns of weakening demand, deflation and a potential property sector crisis.
