Heatwaves, Covid cases scald China's manufacturing activity in August

Covid cases, property sector woes also keep PMI below 50 in August

China’s factory activity extended declines in August as Covid infections, the worst heatwaves in decades and an embattled property sector wei­ghed on production, suggesting the economy will struggle to sustain momentum.

The official manufacturing purchasing managers’ index (PMI) rose to 49.4 in August from 49.0 in July, the National Bureau of Statistics (NBS) said on Wednesday.

While the PMI slightly beat expectations for 49.2 in a Reut­ers poll of analysts, it remained below the 50-point mark that separates contraction from growth for the second straight month, suggesting protracted weakness in the sector.

The survey shows the world’s secondlargest economy is