Employees work on a new energy vehicle (NEV) assembly line at a BYD factory in Huai’an, in China’s eastern Jiangsu province on August 26, 2024.
| Photo Credit: AFP
China’s manufacturing activity sank to a six-month low in August as factory gate prices tumbled and owners struggled for orders, an official survey showed on Saturday, pressuring policymakers to press on with plans to direct more stimulus to households.
The National Bureau of Statistics purchasing managers’ index slipped to 49.1 from 49.4 in July, its sixth straight decline and fourth month below the 50 mark.
After a dismal second quarter, the second-largest economy lost momentum further in July, prompting policymakers to signal they were ready to leave their playbook of pouring funds into infrastructure, instead targeting fresh stimulus at households.
Sentiment remains gloomy among manufacturers as a years-long property crisis keeps domestic demand in the doldrums and Western curbs loom on exports such as EVs.
Producers reported factory gate prices were the worst in 14 months, while new order and new export order sub-indices stayed in negative territory.
