Manufacturing industry Sentiment in China's industry remains tense
The mood in China's industry has remained poor. The state purchasing managers' index, which reflects sentiment in larger and state-owned companies, stood at 49.9 points in August.
31.08.2025, 05:08
SDA
This is a minimal increase of 0.1 points compared to the previous month, according to the statistics office in Beijing. However, the economic indicator remains well below the critical threshold value of 50.
The Purchasing Managers' Index is an important leading indicator for analysts and decision-makers. If the value exceeds 50 points, statisticians assume that economic activity is expanding. If the value is lower, this signals a contraction in industrial activity.
China's economy is under pressure due to the ongoing real estate crisis, weak domestic consumption and the trade dispute with the USA. US President Donald Trump announced 145% punitive tariffs on Chinese imports. The Chinese side then decided to impose 125% duties on US imports. However, the two countries have currently agreed on a pause in the tariff dispute that will last until November. Until then, only the existing duties of 30 and 10 percent respectively will apply.
