National Bureau of Statistics (NBS): Manufacturing PMI in August Was 49.4%, Indicating Improved Manufacturing Business Climate

Manufacturing PMI Edged Up Slightly in August While Non-Manufacturing Business Activity Index Accelerated Expansion

—Senior Statistician Zhao Qinghe From NBS Service Industry Survey Center Interprets China's PMI for August 2025

On August 31, 2025, the NBS Service Industry Survey Center and China Federation of Logistics & Purchasing released China's Purchasing Managers' Index. Senior Statistician Zhao Qinghe from the NBS Service Industry Survey Center provided the following interpretation.

In August, the manufacturing PMI, non-manufacturing business activity index, and composite PMI stood at 49.4%, 50.3%, and 50.5% respectively, up by 0.1, 0.2, and 0.3 percentage points MoM. All three indices rebounded, indicating China's economic climate maintained overall expansion.

I. Manufacturing PMI Edged Up Slightly

In August, the manufacturing PMI rose to 49.4%, showing improved climate conditions compared with the previous month.

(1) Both production and demand indices rebounded. The production index reached 50.8%, up 0.3 percentage points MoM, remaining above the threshold for four consecutive months with accelerated manufacturing output expansion. The new orders index stood at 49.5%, up 0.1 percentage points MoM. By sector, production and new orders indices for pharmaceuticals, computers/communication/electronic equipment significantly outperformed the manufacturing average, reflecting rapid supply-demand release. Conversely, textiles/apparel/accessories, wood processing/furniture, and chemical raw materials/products sectors remained below the threshold, indicating insufficient production and demand. Driven by manufacturing output recovery, recent corporate procurement activities accelerated, with the purchasing volume index rising to 50.4%.

(2) Price indices continued rising. The main raw material purchase price index and ex-factory price index registered 53.3% and 49.1% respectively, up 1.8 and 0.8 percentage points MoM for three consecutive months of growth, showing continued improvement in overall manufacturing market prices. Sector-wise, ferrous metals smelting/processing and metal products industries saw both purchase and ex-factory price indices exceed 52.0%, indicating overall price increases for raw material procurement and product sales. Pharmaceuticals, chemical fibers/rubber/plastics sectors maintained both price indices below the threshold.

(3) Large enterprises sustained PMI expansion. Their PMI reached 50.8%, up 0.5 percentage points MoM, staying above the threshold for four months with accelerated expansion pace. Medium-sized enterprises recorded 48.9%, down 0.6 percentage points MoM, reflecting a pullback in climate conditions. Small enterprises improved to 46.6%, up 0.2 percentage points MoM, showing climate condition recovery.

(4) Partial Key Industries Maintain Expansion. The PMI for high-tech manufacturing and equipment manufacturing stood at 51.9% and 50.5% respectively, up 1.3 and 0.2 percentage points from the previous month, demonstrating sustained strengthening of their supportive and leading roles. The PMI for the consumer goods industry was 49.2%, down 0.3 percentage points month-on-month, while that for energy-intensive industries reached 48.2%, rising 0.2 percentage points, with their prosperity levels showing continuous rebound.

(5) Overall Positive Market Expectations. The production and business activity expectation index registered 53.7%, up 1.1 percentage points from the previous month and marking a two-month consecutive increase, indicating enhanced market confidence among most manufacturing enterprises. By sector, the production and business activity expectation indices for general equipment, railway, ship, and aerospace equipment industries all remained in the relatively high prosperity territory above 58.0%, reflecting more optimistic industry development expectations.

II. Accelerated Expansion of Non-Manufacturing Business Activity Index

In August, the non-manufacturing business activity index stood at 50.3%, up 0.2 percentage points month-on-month, maintaining expansion in the non-manufacturing sector.

(1) Significant Rebound in Service Sector Prosperity. The business activity index for the service sector reached 50.5%, rising 0.5 percentage points from the previous month and hitting a yearly high. By industry, the business activity indices for capital market services, railway transport, air transport, telecommunications, radio and television, and satellite transmission services all remained in the high prosperity territory above 60.0%, with rapid growth in total business volume. Notably, the business activity index for capital market services stayed above 70.0% for two consecutive months. Meanwhile, the business activity indices for retail and real estate industries remained below the threshold, indicating weaker prosperity. In terms of market expectations, the business activity expectation index stood at 57.0%, up 0.4 percentage points month-on-month, signaling optimism among service sector enterprises regarding near-term market prospects.

(2) Pullback in Construction Sector Business Activity Index. Affected by unfavorable factors such as recent high temperatures and rainy weather, construction production and operations slowed down, with the business activity index at 49.1%, down 1.5 percentage points from the previous month. Market expectations showed the business activity expectation index at 51.7%, slightly higher by 0.1 percentage points month-on-month.

III. Sustained Expansion of Composite PMI Output Index

In August, the composite PMI output index stood at 50.5%, up 0.3 percentage points from the previous month, remaining in the expansion territory and indicating accelerated overall expansion in production and business activities among Chinese enterprises. The manufacturing production index and non-manufacturing business activity index, which constitute the composite PMI output index, registered 50.8% and 50.3% respectively.